China's State grain purchase in the country's main growing area was higher than expected, possibly leading to a tighter market supply while pushing up domestic grain prices, according to a recent statement by the China National Grain and Oils Information Center.

The center said that by April 30, China Grain Reserves Corp, the State-owned agricultural conglomerate that is in charge of the country's grain reserves, had purchased and stored 24 million metric tons of corn from farmers in Northeast China, the country's main corn grower. The center previously estimated the figure would be 20 million tons.

Industry analysts said because of the increased purchase, the company might cut this year's corn imports. This will lead to a tighter supply in the market, forcing up grain prices in China's domestic market, they added.