SunSirs: China Corn Prices continued to be Strong Last Week (July 3-7)

According to the Commodity Market Analysis System of SunSirs, the domestic corn price continued to be strong last week. The average price of yellow corn in the third class at the beginning of the week was 2,767.14 RMB/ton, and the average price over the weekend was 2,778.57 RMB/ton, an increase of 0.41%.

In July, supported by the decreasing supply of high-quality surplus grain in the domestic corn market, grain storage trade has been reluctant to sell at high prices, and ports and downstream deep processing enterprises have raised prices to replenish inventory, driving the domestic corn market prices to continue to be strong. The price of corn continues to rise, and some grain trading entities are concerned that the price will rise and fall, leading to a stronger willingness to leave the warehouse. The domestic corn market supply has slightly rebounded, and in addition, the corn inventory of ports and deep processing enterprises has been effectively replenished. The overall price increase in the domestic corn market over the weekend has stabilized.

Last week, domestic egg prices fluctuated and advanced, with a 0.12% increase during the week. Pig prices were relatively strong, with a 1.74% increase during the week. The market in the breeding industry continued to be sluggish, with poor enthusiasm from farmers for restocking. The overall domestic pig stock showed a downward trend, and the demand for corn feed in the breeding industry will continue to be sluggish in the short term. In addition, international grain prices have significantly fallen, leading to a decrease in corn import costs. Early spring corn is about to enter the market in August, and the expectation of a high yield in the new season is strong, The downstream deep processing profits of corn are still low, and many bearish factors are suppressing it. In the future, the price of corn in the market will continue to rise with insufficient momentum.

SunSirs corn product analyst believes that in the short term, the domestic corn market price will fluctuate slightly at the current level in the long short game.

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