(Yicai Global) Oct. 15 -- The price of domestic corn sold in China is unlikely to go above CNY2,000 (USD289) a ton despite short-term supply shortages, according to one analyst.

Prices rose to CNY1,960 a ton in the north of the country today from less than CNY1,800 at the end of last month.

Pricing softened in September when some farmers short on storage space were eager to sell after supplies built up, said Zhou Zhe, an analyst at information site Chinagrain. The market tightened as producers shifted to wheat and other crops, leading corn buyers to raise their offers. That prompted some farmers to hold out for even higher prices.

Corn prices have gained as imports from the US have become unrealistic in the wake of Chinese countermeasures imposed against American tariffs, while demand for the homegrown crop spiked after outbreaks of African swine fever meant pigs in northern China could not be moved to other areas. But producers in the north will hike production this month due to the impact of more stringent nationwide environmental inspections set for November.

The new sales wave following wheat planting in addition to sizeable transaction volumes of stored corn have partly curbed the surge in prices, so current levels can be considered low from a long-term perspective, Zhou added.

Editor: William Clegg