The corn sales from China's State warehouses does not really get underway and experts which is economic, that remain for the time being, so that the Government in Beijing to sit on their high inventories will remain. Nevertheless, the prices that are required in the auctions should not be reduced. With high prices, it wants to support incomes in rural China. On the international market are the prices for corn and substitutes 40% cheaper. It is to be expected that maize and sorghum imports will remain so.
In addition to large sorghum imports to China are also various corn supplies from the Ukraine. The auctions of maize would be domestic production out of State are therefore in the months June to September be limited. Come from the Ukraine in the third quarter of this year at least two million tons of maize. Sorghum from the United States, which is used as a cheap alternative in the feed and the Importe are referred to as robust is still cheaper. Alone in April, a million tons were imported sorghum and a million tons of barley. Also the acquisition of distillers of dried grains developed quite well BB´s (DDGs) and again reached the high level of September 2014.
Already in April - so a month earlier than usual - China had started with the auction of State stocks and weekly in the major consumption regions of the country offers 300,000 tonnes of maize. But for the most quotations there is not even a bid. In may, only 12% of the offered were sold, although the corn subsidies were offered to fabricators. This year less than 30 million tons could be sold 2014 (120 million tons) corn or a quarter of the State stock from the harvest. It is conceivable that the Government in Beijing will sell manufacturer their corn at lower prices on ethanol, to create space in the warehouses of the intervention before the next harvest. May decrease the amount of intervention for the upcoming crop.
