SunSirs: China Corn Prices Fluctuated and moved forward Last week (July 10-14)

According to the Commodity Market Analysis System of SunSirs, the domestic corn price stabilized last week and slightly declined. At the beginning of the week, the average price of yellow corn in the third class was 2,781.43 RMB/ton, while the average price over the weekend was 2,785.71 RMB/ton, a slight increase of 0.15%.

Supported by factors such as the expected increase in El Nino production reduction, reluctance of grain storage trading entities to sell at high prices, and downstream deep processing enterprises to increase prices and replenish inventory, the domestic corn market price continued to be strong in July. In mid July, the auction volume of national corn storage increased, and some regional trading entities' intention to sell out and realize corn prices increased after the increase in corn prices. In addition, downstream enterprises slightly lowered the purchase price of corn after receiving a certain replenishment of inventory, The overall price increase in the domestic corn market stabilized and then slightly declined.

Last week, domestic egg prices were slightly stronger at the bottom, with a slight increase of 1.48% during the week. Pig prices fell again, with a decrease of 1.21% during the week. The overall market of the breeding industry remains sluggish, with the domestic pig to grain ratio falling below 5:1 again. The loss situation in the pig breeding industry continues to increase, and the enthusiasm of farmers to supplement their livestock has significantly decreased. In the future, the domestic pig stock will continue to decline, and the demand for corn feeding will become even weaker.

According to corn product analysts from SunSirs, downstream procurement is cautious as corn prices continue to remain high, and there is an increase in the use of malted wheat as a substitute for corn. Imported corn and its substitutes continue to arrive in Hong Kong. In the short term, under the pressure of many bearish factors, the overall domestic corn market prices will be under pressure and operate weakly. The El Nino weather will have an impact on the growth of autumn corn, and supported by factors such as the decreasing availability of high-quality surplus grain in China, there is limited room for overall price decline in the domestic corn market in the future.

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