MySheen

New changes are taking place in the situation of grain purchase and sale in China.

Published: 2024-11-21 Author: mysheen
Last Updated: 2024/11/21, New changes are taking place in the situation of grain purchase and sale in China.

"the separation of market pricing and price compensation" is a new framework for the reform of the corn collection and storage system determined by the National Development and Reform Commission this year. It emphasizes that the price formation mechanism will be returned to the market, changing the temporary reserve policy of the state guarantee that has been in operation for many years. What changes have this policy brought about? On 11 August, the 2016 China Grain and Oil Wealth Forum Chaganhu Summer Summit and Jilin Provincial Grain production and Marketing Cooperation Symposium, sponsored by the people's Government of Jilin Province, was held in Songyuan City. Relevant responsible persons of grain administrative departments and representatives of grain-related enterprises from 31 provinces, autonomous regions, and municipalities across the country were invited to attend the meeting to jointly discuss the new situation and changes in grain purchase and marketing.

First of all, the price level tends to decline and the trading volume has increased. World corn prices have fallen continuously since levelling in 2012, with expectations that production exceeds sales forcing corn prices to return to low levels in 2007. Due to the increase in the amount of industrial processing and the improvement of the prosperity of breeding enterprises, the overall demand for corn also increases. During the current session, a total of 190 contracts were signed for the sale of corn, rice and miscellaneous grains, with a grain trade volume of 9.48 million tons and a turnover of more than 20 billion yuan.

Secondly, high quality and high price has become a consensus. Jilin Province is located in Sautéed Sweet Corn with Salted Egg Yolk belt and rice golden belt with high planting technology and good grain quality. At the signing site, a reporter from the Economic Daily learned that the new corn for the autumn harvest in Jilin is favored by users. Zhou Lijie, Guangxi Nanning Grain Reserve Management Co., Ltd., said that the price of Jilin corn is 60 yuan per ton higher than the market price, but because of its high quality, bulk density, starch content and other indicators, Guangxi still likes to buy Jilin corn, especially for small livestock feed. Jilin corn accounts for 40% of the corn consumption in Guangxi.

Finally, regional cooperation forms an atmosphere. Due to the differences in climate between the north and the south, and the great differences in grain varieties and characteristics, it has become a new trend for southern grain marketing areas to take the initiative to cooperate with northern high-quality grain sources to build new brands. For example, Beijing Grain Group Guchuan Rice Co., Ltd. and Songyuan City, Jilin Province Songyuan Song Grain Group jointly build the "Ancient Boat + Chaganhu" brand, the former advantage is the local market, the latter advantage is to have high-quality products.

 
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