15:15, 28.07.2009 — Новости
автор: OilWorld.Ru

DJ China Govt Corn Sales Keep Prices Supported; Volume Up On Wk (ENG)


BEIJING (Dow Jones)--The Chinese government's corn sales Tuesday helped
support market prices, with higher volumes compared with last week.

  The government sold 928,300 metric tons of corn from its reserves to major
producing areas in the north and the northeast, 48% of the 1.94 million tons it
planned to sell. It sold 745,900 tons a week ago.

  The average price was CNY1,590/ton, lower than CNY1,600/ton last week.

  But analysts said the lower price was due to lower quality rather than higher
supply.

  "The government sales didn't push prices lower. On the contrary they
supported the cash prices by setting a floor price," said Wang Cheng, an
analyst with Nanhua Futures Co.

  The tightening market supply also helped support prices, analysts said,
adding the presence of more than 30 million tons in reserves means prices are
unlikely to rise much either, since the government can increase the sales
volume on  higher demand.

  Cash corn prices in major producing areas in the week to Tuesday were mostly
stable, with prices up in some areas.


  -Zheng Xiaolu contributed to this story, Dow Jones Newswires; 8610 6588-5848;
tracy.zheng@dowjones.com


  

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