According to well-informed source, Chinese government will release corn and soybeans reserves to the market in northeast China next week.

Chinese government have purchased and stored 7.25 million tons of soybeans and 30 million tons of corn at a protective price in northeast China since the second half of last year. The government will sell 0.5 million tons of soybeans by open auction next Tuesday, July 21, including 0.3 million tons from Heilongjiang Province and 0.2 million tons from Jilin and Liaoning provinces, according to well-informed source.

Two million tons of corn will be put on the market next Thursday, including 0.3 million tons from Inner Mongolia, 0.5 million tons from Liaoning Province, 0.8 million tons from Jilin Province and 0.4 million tons from Heilongjiang Province.

According to official source, the upset price is not set yet. Some market participant said the upset price of temporary soybeans reserves has been set at the sum of purchasing price and charge for purchasing of 0.25 yuan, namely 3,750 yuan per ton. And the upset prices of second-class corn and first-class corn are 1,550 yuan and 1,590 yuan respectively.

For more information, please consult the original coverage in Chinese at:

http://www.eeo.com.cn/Politics/beijing_news/2009/07/16/144121.shtml

(China.org.cn by Yang Chao, July 17, 2009)