November 12, 2008
Second-grade corn prices fell 1.32 percent to average RMB 1,608 per tonne in late October, due to low demand and high inventory, according to the China Zhengzhou Grain Wholesale Market.
The average corn price at Zhengzhou market fell 1.62 percent to RMB 1,515 per tonne from mid-October.
China has enjoyed a good corn harvest this year, and the Chinese government has previously auctioned reserved corn to lower market prices. Both factors have lowered profits for corn traders and made them unwilling to purchase more corn. Processors also did not buy much corn, as demand for their products was low.
The State Council has previously revealed plans to acquire 5 million tonnes of corn in Northeast China and the Inner Mongolia Autonomous Region for temporary reserve, but the news failed to stimulate the market as acquisition prices had limited movements.
China's corn prices are expected to remain low in November.