China Offers 500,000 Tons of Corn From Reserves to Curb Prices

China, the world's second-largest corn producer, sold 34,396 metric tons of the 498,884 tons of the grain it offered in a series of nationwide auctions today, part of government measures to cool rising food inflation.

The grain from stockpiles in seven municipalities and provinces fetched an average price of 1,740 yuan ($239) a ton, the base price, said the Anhui Grain and Oils Information Center on its Web site today. The center is charged with holding the auctions on behalf of the State Grain Administration.

China is increasing control of the food market after rising costs of meat, vegetable oil and grain pushed inflation to an 11-year high. Today's sales were the second of more than 2 million tons of corn set to be released from state stockpiles.

Government agencies will offer one million tons of imported wheat from inventories tomorrow, the center said.

Corn futures on China's Dalian Commodity Exchange rose to a record 1,816 yuan a ton on Nov. 26. The contract for May delivery fell 0.8 percent to 1,682 yuan a ton at 11:05 a.m. local time in the first trading session of the year.