Due to the contraction of global currency liquidity and US dollar appreciation, CBOT wheat and corn futures prices have tumbled to $210/MT and $161/MT respectively from the $300/MT and $220/MT in Aug.

In the domestic futures market, strong-gluten wheat price has dropped to RMB1,800/MT in Zhengzhou and corn price to RMB1,700/MT in Dalian, down RMB100/MT and RMB200/MT respectively from Aug. In terms of US dollar price, domestic wheat and corn futures prices are $260/MT and $250/MT respectively, far above the international prices. It is clear that the international grain price has a pressure on the domestic market.

List

News Briefs 1

Bearish Grain Futures Price 2

Grain Import Quotas for Year 2009 to Be Issued 3

Corn Exports Collapsed This Year 4

Grain Procurement Update 5

Weather & Crop Conditions 8

Crop Conditions 9

Weather Forecast (October 17, 2008?October 22, 2008) 11

Price Trends 12