MySheen

The number of corn auctions this week is nine times higher than that of last week.

Published: 2024-12-22 Author: mysheen
Last Updated: 2024/12/22, China will auction 3.4 million tons of national stored corn this week, nine times more than last week, including 3 million tons from the three northeastern provinces and Inner Mongolia, according to an official Chinese website. China began auctioning stored corn in April this year, a month earlier than last year.

China will auction 3.4 million tons of national stored corn this week, nine times more than last week, including 3 million tons from the three northeastern provinces and Inner Mongolia, according to an official Chinese website.

China began auctioning stored corn in April this year, a month earlier than last year. The Chinese government's temporary purchase policy on corn has led to an increase in state reserve stocks, but because the purchase price is higher than the international market, it is difficult to sell the corn to the international market. In the market year to April 30, 2015, the Chinese government collected and stored 82 million tons of corn, which was higher than traders had expected.

In an effort to stimulate domestic corn consumption demand, the Chinese government has also increased subsidies for corn processing plants, which could help boost turnover at this week's auction. By contrast, last month's auction was slow because of higher government-set prices and weak domestic demand for corn. In the last weekly auction, a total of 367300 tons of corn were provided, but the actual turnover was only 17541 tons.

The Chinese government's auction of stored corn has led to a drop in domestic corn prices. On Monday, corn at the Shenzhen port was quoted at 2450 yuan ($395) a tonne, down 3 per cent from a month ago. For comparison, Monday's barge for Meiwan 2 Yellow Corn was quoted at $4.2125 a bushel, or $165.8 a ton.

 
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