MANILA, Philippines?The Department of Agriculture wants to modify its electronic corn trading system to jumpstart activity in the exchange, hoping that it will evolve into a futures bourse for various types of commodities.

Since its soft launch in November 2009, the Agricultural Commodity Exchange System (ACES) has generated zero activity on the buyer?s board. In contrast, several offers have been logged on its seller?s board.

ACES chair Gregorio Tan Jr. admitted that the board had not successfully matched a seller with a buyer since November because of this.

ACES is now exploring ways to generate more activity for the system, possibly by lowering the minimum price for sellers, he said.

?Right now the minimum price is P13 per kilo (the NFA?s buying price for clean, dry corn). Users find it expensive,? Tan said.

Another possible policy reform is forward selling.

?Right now they (buyers) must withdraw in a certain period. The problem there is how to preserve quality. We can allow users to buy for delivery in the future,? Tan said.

There is some concern about the availability of corn stocks in the near-term as corn production for the January-June 2010 period is forecast at 3.21 million metric tons, 0.29 percent less than the 2009 level.

Tan said that a slight decline in corn production may still be good for the ACES because, ?if the population and demand from chicken and livestock picks up, e-trading may be more usable? as corn users look for volume supplies of the grain.

The Bureau of Agricultural Statistics has forecast a contraction in harvest areas for corn by up to 1.43 percent, or 17,000 hectares.

?This could largely be observed in Cagayan Valley, Western Visayas and Soccsksargen,? BAS said in a report.

In 2009, corn managed to post a 1.53-percent rise in production, given increases in area harvested and yield per hectare.

Under the ACES system, four pilot areas serve as contact points for buyers and sellers: Isabela, Pampanga, General Santos and Cagayan de Oro City.