November 21, 2011

China's corn prices expected to stay steady

Despite a bumper harvest, China's corn prices will likely remain mostly stable, the State Grain Administration said Friday (Nov 18) in a statement on its website.

The statement gave no details on the size of the harvest.

China's National Grain and Oils Information Centre, the administration's research arm, estimated the crop at a record 184.5 million tonnes this year, up 4% from last year. The administration also said the government will stockpile corn this year, but did not elaborate on quantity and price.

The stockpiling will likely prevent domestic corn prices from falling further, analysts said.

Corn prices have fallen more than 15% since reaching a record in September, as supply was tight before harvest time.