China increasing weekly sales of maize from state reserves

07/05/2015,

In mid-April, China sharply increased the amount of weekly sales of maize from state reserves to 3.4 million tonnes, up almost 3 million tonnes from the previous week. In the previous week, 367 300 tonnes were offered of which only 17 541 tonnes were sold. The significant increase is mostly surplus maize coming from China’s four north-eastern provinces. Annual weekly sales began in April, a month earlier than last year due to accumulated stocks as a result of high purchase prices offered to farmers, which resulted in the Government being unable to sell the maize at prices which were above values in the international market. China has accumulated 82 million tonnes of maize through its annual maize stockpiling programme for 2014-2015 which ended on 30 April, and to boost sales of domestic maize it will subsidize maize prices to processors. The move to sell maize from its reserves has put downward pressure on prices

Country: China