China buying corn , soybean stockpiles to supply for stockpilesUpdate: 11/20/2013
China will continue to buy soybeans and corn from farmers to supplement the national stockpile this year .'
This move of the government would make the price of these two agricultural commodities in the economy continued to be higher than world market prices , while promoting the import operation .
According Reform Commission and National Development ( NDRC ) , China's government will purchase domestic soybean production for 4600 RMB ( 760 USD ) / ton , unchanged from last year , but the the higher the price of soybeans in the U.S. is 10 % .
Reuters quoted an analyst saying : " As soybean prices on the world market is down so the Chinese government did not raise prices this year . Production ( soybeans ) in the country is no longer a concern for the Government. "
However, information center grains and oilseeds Chinese national ( CNGOIC ) said in 2013 , soybean production in China will continue to reduce the third consecutive year and only 12.2 million tons , down 6.5 % from last year .
Therefore , China - the country imports more than 60 % of the soybeans traded in the world - is expected to import a record soybean crop year 2013/14 to meet the demand for animal feed is increase in the country .
For corn , the NDRC said Beijing would purchase domestic corn production for 2220-2260 yuan / ton to put on the national stockpile .
China is now the second largest producer of corn and storing the world more than 30 million tons of corn last year .
According to NDRC , the first time Beijing has agreed to provide grants to selected businesses to encourage them to purchase from corn and rice cultivation area due to warehouse storage at the national part is limited.
The selected businesses outside farming areas will be subsidized 140 yuan / ton to buy corn or rice in the Northeast . / .