Corn prices in China have risen significantly following a surge in soy prices
according to traders and analysts.
The rise in soy prices has led feed millers in China
to use more corn and regional Asian buyers have been avoiding corn from further away due
to high freight rates.
This has led to concerns that the supply of corn will not be able
to meet demand and China may have to import corn as early as next year.
annual domestic corn consumption is about 130 million tons with a fast growth in meat
consumption pushing up demand from animal feed producers.
Corn prices in
Guangdong rose by RMB 100 per ton over two days to almost RMB 1,400.
Chicago, corn futures soared on talk that COFCO, one of China's two authorized corn
exporters, had raised export prices by US$15 to US$140 per ton.
China was the
world's No 2 exporter of corn this year with shipments of more than 12 million tons.