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Ripon, WI | BEIJING, April 9 (Reuters) - China will release a total of
1.08 million tonnes of corn from state reserves on April 13 in an
effort to cool rising domestic prices <0#ASCORN-CN>, which have
risen high enough to attract imports.
The large state sales are likely to dent domestic prices and
discourage feed mills in the south from sourcing cheap corn,
particularly from the United States, the largest exporter.
Some feed mills have been inquiring about U.S. corn prices
over the past week after tight domestic supply pushed domestic
prices as much as $40 per tonne above U.S. corn, traders said.
Of the total sales, 500,000 tonnes would be released from
state stocks in three major growing provinces in the northeast,
where prices rose to record high levels partly driven by
Beijing's stockpiling programme, an official announcement said.
The sales in the northeast were the first since December when
Beijing suspended auctions in the area, aiming to shore up prices
and boost farmers' incomes after the harvest.[ID:nPEK283367]
The rest, 580,000 tonnes, will be sold in provinces including
Guangdong and Jiangsu in the south and east, according to the
document posted on the website of the National Grain & Oil Trade
On Friday, the most-active corn contract at the Dalian
Commodity Exchange<0#DCC:> was traded slightly lower and closed
at 1,903 yuan ($278.9) per tonne ($7.08) per bushel.
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