A SURGE in Chinese corn prices after the government clamped down on the overloading of trucks has boosted demand for cheaper feed grains like sorghum and barley from top exporters the United States and Australia.

    China launched a nationwide crackdown on overloading lorries in late September, hitting supplies of corn which usually have to be transported around the country from northern growing regions.

    Chinese corn prices have risen 16 percent since October, also supported after the government introduced subsidies for corn processors and as wet weather slowed the latest harvest.

    That has provided an unexpected boost to overseas suppliers of grains that can be used as alternatives to corn in animal feed, with traders reporting an uptick in shipments of sorghum from the United States and barley from Australia.

    “Inspections on overloading ... have limited overall transportation capacity and pushed up the cost [of local corn]. Imported grains now have more price advantage,” said Cherry Zhang, an analyst with Shanghai JC Intelligence Co.

    China has also been giving priority to coal freight on its railways amid surging prices for the fuel as winter starts to bite, according to energy market participants.

    U.S. sorghum shipped to southern China currently costs around 1,660 yuan (US$240) per ton, compared with domestic corn arriving at Shenzhen’s Shekou for 2,040 yuan per ton. Feed barley is about 1,500 yuan per ton. (SD-Agencies)