SunSirs: Corn Price Increased With Fluctuation

The domestic corn price in March slight went upward. On March 13, yellow corn average price was 1851.43 RMB/ton, and the weekend average price was 1864.29 RMB/ton, a small rise of 0.69%.

Into March, the domestic transportation conditions gradually improved, and the corn market supply in the production areas continued to increase. Meanwhile, the policy corn has been released from storage, and the downstream enterprises purchase corn is relatively stable. Hence, the corn market price in the production areas is relatively firm operation. 

On the other hand, port corn prices supported by the production area corn prices, and the overall relatively stable forward. The purchase price of corn in north China deep-processing enterprises is mainly affected by the quantity of corn arriving, and the overall price is mixed. After the increase in price and replenishment of stock, the inventory is again reduced, and the overall price of corn moves forward with small fluctuations.

At the end of the month, with the approaching of the spring sowing season in the producing areas, the basic level of circulating high-quality grain sources became less and less, and the willingness of the deep-processing enterprises in the producing areas to supplement storage increased. Under the support of the demand for replenishment, the overall corn price in the producing areas increased slightly, and the corn price in the ports and selling areas rose slightly. The corn deep processing enterprises in north China production areas followed by a small rise, leading to the overall shock of the purchase price of domestic corn to run strong.

In March, the overall domestic pig price fell by 2.16% by shock, while the low egg price rose by 1.95%. In general, the profit margin of breeding has decreased, and the current domestic pig stock is still at a low level, so it is difficult for corn feeding demand to pick up quickly in the short term and support the further rise of corn market price.

Market Forecast: Corn products in SunSirs, an analyst named Wenxu Li think that in the short term, with the required inventory demand, domestic market prices for corn run strong. In general, feed demand continues weakness, and deep processing products delivered not free. There is no actual just need support. It is expected to corn prices continue to rise in April limited space as a whole, and the price will be fluctuated near 1880 RMB/ton.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.