China's Dalian Commodity Exchange (DCE) released a document on late Wednesday to revise its rules about corn transaction warehouses and allow the designated corn warehouses to set up extended warehouse areas.
Under the document, the first pilot designated warehouse for corn transactions is the Yinkou Port and its extended warehouse areas are the Liaoning Yihai Kerry Tereos Starch Technology Co., Ltd in Tieling city, Liaoning province and the Dehui Jinxi Grain and Oil Storage Co., Ltd in Dehui city, Jilin province.
The revised regulations will come into effect from the corn contract for delivery in January, 2017. In the past ten years, with changes in the market structure, problems such as tight port storage capacity and insufficient regional coverage have become prominent.
The establishment of the extended warehouse areas will effectively resolve the problems, make it convenient for enterprises' transactions and enhance market efficiency, said relevant official of the DCE.
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