China has sold a further 1.1m tonnes of corn from state reserves, amid signs that its selldowns are cooling the rally in domestic prices which has spurred some processors to investigate imports. All 800,000 tonnes offered in the north eastern provinces sold, the National Grain & Oil Trade Centre said. Trade was slower further south from the main producing regions, with successful bids for only half the 570,000 tonnes offered in Hebei, Jiangsu and Shandong. The trends echoed those of last week, China’s first selldown of state reserves this year, when Beijing sold some 850,000 tonnes of 1.1m tonnes on offer. However, prices were modestly lower this time, falling by 1.6% to 1,702 remninbi a tonne in the north east. On China’s Dalian exchange, the near-term May contract closed down 0.3% at 1,925 remninbi a tonne, losing all but 4 remninbi of its premium over the July lot. Dalian prices have recorded a slight decline since Beijing two weeks ago unveiled its auction plans, after an increase some 12% in the previous two months. The rally, which in some areas has driven prices to record highs, has prompted some feed mills to make inquiries over importing corn, rumours of which drove Chicago prices sharply higher earlier this month. China, the world’s second biggest producer and consumer of corn, has not imported the grain in any quantity since the early 1990s. The country has also this month ramped up imports from the US of distiller’s grains, a by-product of corn ethanol plants used in animal feed. Beijing is estimated by China Zhongzhou Futures to have “temporary” corn reserves of some 10m tonnes, largely held over from the bumper 2007 and 2008 harvest, with an unknown quantity of further stocks.