Over 100 mln tons of autumn grain purchased in China
More than 100 million tons of autumn grain have been procured in China one month into the peak purchasing season, according to the data released by the National Food and Strategic Reserves Administration on Wednesday.
Autumn grain purchases are vital to China’s grain security, accounting for three quarters of the country's annual grain procurement volume. Major commodities include rice, corn and soybeans.
Purchasing picked up pace in early October, and markets have continued to see high levels of activity, with high-quality grain fetching premium prices.
In northeast China, corn harvest came earlier this season compared to last year. Nenjiang County in Heilongjiang Province has seen the planting area of high-quality corn varieties surpass 660 square kilometers this year.
Even with plentiful supply, demand remains high.
“We purchase 500 grams of corn at a price one cent to 1.5 cents higher than the market price, which has boosted farmers’ enthusiasm for selling grains and ensured high grain quality. Our company also benefits from that,” said Yuan Zhigang, manager of a local grain storage facility.
Corn growers in Tongliao City, north China’s Inner Mongolia Autonomous Region, said by signing contracts directly with the warehouse runners, they are guaranteed a stable income.
“According to the contract, my corn is sold at 2,090 yuan per ton, which is 40 yuan higher than the market price,” said Ma Zhongchen, a local farmer.
Analysts said multiple factors have contributed to the rising purchase price of corn, noting that demand is expected to rise further.
“Regarding feed, feed production has been rising since the start of this year, which drives the demand for corn. Regarding processing, since the new corn crops came on the market this latest season, deep-processing enterprises have ramped up their month-over-month operating rates. Data showed that the operating rate for starch processing firms reached around 66 percent in early November, marking a 6-percent month-over-month rise,” said Wang Xiaohui, director at the National Food and Strategic Reserves Data Center.
