China's corn futures rose on Monday to their highest in a month on smaller-than-expected plantings of the grain, as well as drought in parts of the country's northeast, the country's biggest corn growing region.
The most-active corn futures traded on Dalian Commodity Exchange, for delivery in December, rose 0.69 percent to 1,762 yuan ($278.12) per tonne as of market close. The drought in parts of the northeast, the smaller-than-expected acreage for corn plantings, and rising planting costs, together pushed up the prices, said Meng Jinhui, an analyst with Shengda futures.
China's farmers were expected to plant more corn this year, as prices of the cereal had remained at high levels since harvest last year.
Higher-than-expected subsidies for other crops like soybeans might, however, might further push down corn acreage, according to a forecast by Ministry of Agriculture and Rural Affairs said on Thursday last week. China is set to produce 210 million tonnes of corn in the 2018/19 crop year, down 2.9 percent on this year's level, the ministry said in a monthly report.
Comments
Comments are closed for this article.