An unspecified amount of corn from the national reserve will be released into the market next Tuesday to curb rising prices.
The quantity and auction venues will be announced today or tomorrow, an official from the State Grain Administration told China Daily yesterday.
State Grain Administration chief Nie Zhenbang said more corn will be auctioned if the price surges continue.
Corn prices have been on the rise mainly due to expanding ethanol demand as global crude oil prices keep surging and as corn yields have decreased both at home and abroad.
In major domestic corn markets, the average price rose 3 percent last week from the week before. Globally, prices went up 18 percent last month year on year, after surging 50 percent in 2006.
The National Development and Reform Commission, or NDRC, yesterday reiterated that the government should take stricter measures to prevent corn from being used for ethanol and bio-fuel.
The regulator also urged tight control over corn exports. "If all these measures are fully implemented, the demand and supply will be balanced," said a spokesman for the commission.
About 2 percent of the country's corn output, or 3-4 million tons, is used each year to make ethanol. Much of the rest is used for animal feed.
However, rising prices for feed coupled with animal diseases have led to pork price hikes this year.
The International Food Policy Research Institute said corn prices will continue to rise.
"Rising oil prices are the major driving force behind the long-term trend," the institute said this week.
According to the institute, ethanol production is profitable even if oil prices hover around the 60-70 USD a barrel mark. They are currently around $90.
Questions:
1.Corn prices have been on the rise mainly due to expanding ethanol demand and what other factor?
2.By what percentage have global corn prices risen since last year?
3.How many millions of tons of corn are used each year to produce ethanol?
4.According to the International Food Policy Research Institute, what is the major driving force behind continued rising corn prices?
Answers:
1.Lowered corn yields domestically and internationally.
2.18 percent.
3.3-4 million.
4.Rising oil prices.
（英语点津 Celene 编辑）
About the broadcaster:
Jonathan Stewart is a media and journalism expert from the United States with four years of experience as a writer and instructor. He accepted a foreign expert position with chinadaily.com.cn in June 2007 following the completion of his Master of Arts degree in International Relations and Comparative Politics.
