Guangzhou, Guangdong -- (SBWIRE) -- 03/02/2011 -- According to CCM’s Corn Products China News 1102, corn price will rise in future because of the execution of national corn temporary reserve in 2011.
Entering February 2011, Chinese government's stipulation of forbidding large state-owned corn deep processing manufacturers in Northeast China to purchase corn directly from farms becomes the hotspot within the industry. The purpose of the move is to guarantee the smooth execution of national corn temporary reserve in 2011.
It’s noticed that the policy will have great impact on Northeast’s corn processing enterprises. The reserve of the corn processing enterprises generally is less than three months, so it has a strong effect on the continued production when purchasing cease for a long time. Besides, the cost of corn derivate products will be a big burden if corn’s price rises, which may ultimately lead to price increase in corn products of these companies. At present, the purchasing price of the third grade corn in national corn temporary reserve in Northeast China is planned to be around USD272/t, lower than the average USD290/t of the manufacturers on Feb. 13th 2011, but it’s much higher than that in previous years.
According to CCM’s Corn Products China News 1102, China needs sufficient corn to regulate corn price in the future. Current national is not enough to release to stabilize corn price if significant ascending of corn price occurs in the future. However, CCM’s researchers said that China’s winter drought had great impact on wheat price trend in these weeks, if the duration of this drought exceeds in March, and it also might be have negative effect on corn price.
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