Traders and industry officials in China said on Thursday that, although few buyers were interested, some Chinese corn was still available for export before the end of February at $127 to $128 a tonne, free-on-board - a price that implied government support.
"There are some offers at these price levels," said one senior official at one of the country's two authorised exporters. "The local government encourages us to sell more."
Though the government is yet to decide on exports next year, some industry officials said Beijing was likely to continue supporting exports due to large stocks in major producing provinces, including Jilin, Liaoning and Heilongjiang.
They said Chinese suppliers had sold 350,000 to 500,000 tonnes for export recently, and maybe more, before a big US crop began depressing Chicago futures towards 20-year lows to undermine China's competitive edge in the Asian market.
Early this week South Korean feed millers bought US corn at prices around $140.50 a tonne, including costs and freight, while paying about $135 for Chinese corn.
The traders and industry officials said China was unlikely to import corn this year or next, despite some expectations, particularly in the United States, that it might start doing so. Chinese consumption is growing faster than production.
"The prospect for Chinese corn imports are improving, but we see no imports this year or next year," said one grain official.
The senior official from the exporter agreed, saying: "The main problem is that the central government does not want it."
"It is not possible this year or next year," he added.
In September Beijing announced steady 2006 import quotas for 7.2 million tonnes of corn, of which 60 percent were earmarked for state-owned firms. Yet the traders said the quotas were usually divided into small lots for private players, making it difficult to fill a vessel of 50,000 to 60,000 tonnes.
Meanwhile domestic corn prices have eased, though some traders said the 2005 crop was not quite as good as earlier expected. Prices were also under pressure from worries over bird flu.
Customs data showed China exported 7.15 million tonnes of corn in the first nine months, 279.9 percent more than a year earlier, of which 543,503 tonnes was shipped out in September.