The Chinese government will start stockpiling soya and corn from local farmers at higher prices than a year ago, an industry source said on Tuesday, as Beijing looks to stabilise domestic prices and support soya imports. China, the world's top soya buyer, will pay 4,600 yuan ($740) per tonne to soya farmers in four major growing areas in the north-east. The price was 15 percent higher than what was offered last year, said the source who has seen a government document.
Beijing will pay between 2,100-2,140 yuan per tonne to stockpile domestic corn in the northeast corn belt, up about 7 percent from year ago, the source said. The latest stockpiling, expected to start over the coming weeks and stretch till the end of April, is an annual exercise to protect farmers' interest.
With the new stockpiling price for soyabeans around 4 percent above the price of imported supplies at Chinese ports, analysts said the government's latest reserve build would keep crushers' enthusiasm for imports alive. China has stayed on the sidelines of the global corn market as high international prices made imports unattractive. Industry speculation of stockpiling prices has already pushed up Dalian soya prices, with the most-active May 2003 contract up 1.24 percent to close at 4,757 yuan per tonne on Tuesday.