BEIJING, July 6 -- China Xiwang Sugar Holdings Co. Ltd. said Wednesday it had obtained government approval for U.S. corn imports, which signalled that the government will no longer stand in the way of the grain's trade.

　　A manager from Xiwang, one of China's top corn sweetener p roducers, told reporters that it had received the certificate for imports of 50,000 tons of genetically modified (GMO) corn.

　　The company, based in the northern province of Shandong, placed the order for a full boat-load of corn in May, marking the country's first major corn imports in years.

　　"We have already received permits from the quarantine authority in Beijing," said a Xiwang manager, who declined to be identified.

　　He said the supplier would start loading U.S. corn in coming days for arrival at the end of July or early in August.

　　Many in the corn market were watching if China would allow the imports. They saw more potential trade as domestic corn prices have been high, particularly in Shandong, due to rising demand from the corn processing industry.

　　China, one of the world's top corn exporters only a few years ago, is expected to become a net importer of the grain possibly as early as next year.

　　"We can see there are no restrictions from the political side. Now the only thing is the market," said an industry source based in Beijing, who declined to be named. "If the prices are good, they will buy more."

　　Xiwang had said in May that if all went well with the first cargo, it would buy a second cargo before the domestic crop harvest starting late in September.

　　Yet, the manager declined to comment whether it would go ahead to purchase the second cargo, or had already done so.

　　The industry source and other traders said they had seen many inquiries for corn from both corn processors and feed mills.

　　Chinese buyers, however, were hesitant to follow suit at present.

　　Domestic corn prices came under pressure after the country's State-owned think tank said Monday that 2006 corn output was likely to rise 1.9 percent to a record 142.0 million tons.

　　China National Grain and Oils Information Center said corn acreages climbed 2.1 percent due to a shift from soybeans in the major corn growing northeastern provinces.

　　"The price fall is normal in July and August as grain firms step up sales before the new harvest. But prices will be back to a high level from September," said one analyst at the center.

　　(Source: Shenzhen Daily)