Who set the keynote for corn price rise

The recent rise in domestic corn prices has slowed down, but the overall price level is still strong. The ultra-high volume of corn storage and purchase in Northeast China is the main reason for driving up corn prices across the country. However, the previous sharp rise overdrawn expectations in the future, leading to varying degrees of slowdown, or even decline in the rate of price growth in some areas. Faced with the high price of corn, grain enterprises will consider the increase in the use of other substitutes in the process of purchasing and feed production, which is also another incentive to limit the rise in corn prices.

Since the middle and late February, domestic corn prices have continued to rise and slowed down in the past week; as of March 27, the national average corn price remained at 2428 yuan / ton, up 30 yuan / ton over the same period last week and 118 yuan / ton higher than that before the festival. Sub-regional point of view: the purchase and sale of corn market is active, although the rise has slowed, corn prices in the main producing areas, ports and southern sales areas remain strong.

The situation of northeast producing areas: supported by temporary storage and acquisition, corn prices in northeast producing areas remain strong. However, due to the different collection and storage work in different regions, the price of corn in Northeast China is divided. The suspension of the acquisition of temporary warehouses in some parts of Liaoning has led to a slight drop in local prices; the enthusiasm for temporary storage acquisitions in Jilin and Heilongjiang is still on the high side and supports strong local prices. As of March 27, the average price of corn in Northeast China was about 2250 yuan / ton, an increase of 80 yuan / ton compared with that before the festival.

Situation in North China: the purchase price of corn in North China is also driven by temporary reserves in Northeast China, which continues to rise and has been at a high level. As grass-roots grain sources have basically bottomed out, grain harvesting enterprises also continue to increase purchase prices, and corn prices in North China are expected to continue to operate at a high level. As of March 27th, the average purchase price of corn in North China was about 2215 yuan per ton, an increase of nearly 90 yuan per ton compared with that before the festival.

Port situation: the acquisition of temporary storage has made rapid progress, and the rising price of corn in Northeast China has started earlier this year, resulting in more corn staying in the northeast producing areas, and the outward transport volume is significantly less than in previous years, resulting in a high trend of corn in the northern ports. At the same time, driven by it, corn prices in northern ports have remained strong. Corn prices in southern ports are on an upward trend, but different from northern ports, corn stocks are in a downward trend, mainly due to the active delivery of goods by southern grain enterprises after the festival. However, at present, the stock of alternatives such as barley and sorghum has exceeded that of corn, and most of the procurement by feed enterprises is based on this, restricting the upward price of corn.

Southern sales area: grass-roots corn inventory bottomed out, causing corn prices in the sales area to rise. At present, the corn purchasing enthusiasm of deep processing and feed enterprises has slightly slowed down, mainly because grain enterprises in the face of high prices of corn, in the procurement and feed production process will consider the increase in the use of other alternatives, but also to curb the momentum of corn prices in sales areas.

Generally speaking, the rising price of the domestic corn market is basically established. The excessive temporary storage and purchase and the gradual recovery of the aquaculture industry have become favorable supports for driving up corn prices. Although the previous sharp rise overdrawn expectations in the future, or the price increase is limited, pullback, but the overall environment is still guided by positive factors.