SunSirs: China's Corn Prices Rose and Fell in August

1. China's corn price trend

According to SunSirs monitoring, domestic corn prices surged and fell back in August. The average price of third-grade yellow corn was 2,237.14 yuan/ton on August 1, and the average price on August 31 was 2,244.29 yuan/ton, a slight increase of 0.32%.

2. Market Analysis

Entering August, the State Reserve’s auctions continued to operate normally. With the support from downstream, the State Reserve’s corn auctions were hot at the beginning of the month. With many changes to the auction rules, the corn auction transaction premium has eased. At the end of July, the overall decline fell slightly. The policy premium has eased, and the wait-and-see attitude of trading entities has increased slightly. Deep processing companies in Shandong and other places have slightly lowered their corn purchase prices this week, driving the overall increase in domestic corn market prices to stabilize.

In mid-August, as the National Reserve Corn continued to go out of the warehouse to supply the market, the wait-and-see attitude of trading entities increased, and the auction rules were revised again. The high premium of the National Reserve auction transaction was eased, and the average auction transaction price of the National Reserve fell for two consecutive weeks. , Deep-processing enterprises subsequently lowered their purchase prices, driving the domestic corn market prices to rise and fall slightly. At the end of the month, the average auction transaction price of the State Reserve fell to 1,919 yuan/ton, and the transaction rate declined. In late August, the domestic corn market price continued to be weaker in accordance with the policy.

On August 27, 2020, the National Grain Trading Coordination Center of the National Grain and Material Reserve Bureau and the National Grain Trading Center of the networked provinces (autonomous regions and municipalities) organized the National Temporary Storage Corn Bidding Fair, and plans to be listed on the National Reserve in 2015, 2016, and 2018. Stored in Heilongjiang, Jilin, Liaoning, and Inner Mongolia, 3,988,499 tons of corn, 3,546,757 tons of corn, 88.92% of the transaction, the highest price of 2,210 yuan/ton, the lowest price of 1,640 yuan/ton, and the average transaction price of 1,919 yuan/ton.

In August, the domestic live pig price fluctuated and fell slightly by 1.02% during the month. In August, the domestic egg price rose and fell, and fell by 9.96% during the month. On the whole, the livestock market was still at a relatively high level during the year, and the stock of live pigs continued to increase. , The demand for eggs in the beginning of the school season has gradually picked up, and the demand for corn feed in the future will continue to increase, which will support the corn market price in the future.

3. Outlook

SunSirs corn product analysts believe that it will take time for the new season corn to go on the market. Policy corn will continue to be supplied to the market, and the domestic corn market price will continue to be affected by the policy. The corn export price will gradually fall to a reasonable range.

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