The price of corn in Hebei, Shandong and Henan shows an obvious downward trend.

The downstream industry has shrunk, and the demand for feed corn has not improved.

Compared with the market prices that often occur in previous years, the market prices in Henan, Hebei and Shandong have risen slightly since June. This year, the trend of corn market prices in Henan, Hebei and Shandong is a little abnormal, not only did not rise, but showed an obvious downward trend.

"the purchase price to the warehouse is 1.125, 1.13 yuan per jin, which is much lower than in previous years." Wang Yingzhong, business manager of the first Grain Depot in Jining, Shandong Province, told Futures Daily that at present, many corn starch and alcohol factories in Shandong are underemployed, resulting in a relatively low market demand, and corn prices are back on the downward track after a small rebound from April to May.

According to the reporter's understanding, there are corn starch processing enterprises and a number of large feed processing enterprises all over Shandong, so although the output of corn in the province is very large, it still cannot meet the local demand. In recent years, a large amount of corn has been transferred from Henan, Hebei and other provinces to make up for the supply gap. At present, Shandong has become the new main selling area of corn in the mainland, and it is the leader of the price rise and fall of the corn market in the mainland.

Chang Aiguo, business manager of the National Grain Reserve in Puyang, Henan Province, said that there were many fewer Shandong traders purchasing corn in Henan this year than in previous years, and poor sales of downstream corn products and falling prices limited the growth of demand. According to Chang Aiguo, up to now, the corn stocks of farmers in Henan are higher than in previous years, of which 20% to 30% of the corn in Puyang and other places have not been sold.

"when the alcohol factory was booming, the price of our local corn was 3 cents higher than that of other places, but now it has been suspended for many days. Because alcohol production does not make money, coupled with the fact that financial institutions basically do not lend to these entities such as grain-related enterprises, the alcohol factory has to close its doors and stop production, which makes the purchase and sales activity in the local corn market much lighter than in previous years. " Xu Wei, a corn trader in Zhoukou, Henan Province, pointed to a local small alcohol factory and told reporters that not only the corn market has been depressed in recent years, but also other agricultural markets such as wheat, cotton, peanuts, and so on. Some small and medium-sized grain traders like him have switched to other businesses.

According to Zhao Jian, a corn vendor in Xingtai, Hebei, the purchase and sale of the local corn market is basically at a standstill, farmers do not sell because of low prices, and no one on the market takes the initiative to buy it, which makes the market like a pool of stagnant water.

The reporter learned from the corn markets in Hebei, Shandong and Henan that the sales scope of corn produced in the mainland has been narrowing in recent years. Due to the lack of obvious quality deviation and price advantage, the quantity of corn produced in the mainland for export to Guangdong, Guangxi and other places has been declining. In addition, in recent years, corn processing enterprises in Shandong and other places, the newly emerging main selling area, have encountered the problem of shrinking downstream industries, coupled with the fact that the demand for corn for feed has not improved, and the prospect of demand for corn produced in the mainland is not optimistic. the market expects that the mainstream price of new corn will be 1.05 yuan per jin before listing, and the purchase price of small vendors cannot rule out the possibility of approaching 1 yuan per jin.

Some market participants believe that the obvious decline in corn prices in Hebei, Shandong and Henan is only a microcosm of the national corn market. Due to the serious oversupply in the domestic corn market, huge inventory and obvious price advantages of substitutes, the overall price performance of the national corn market is low. In addition, in the new crop year, it is expected that the domestic corn planting area will still grow, the yield will still be high for many years, and the long-term trend of corn prices is pessimistic.