SunSirs: China Domestic Corn Prices fluctuate and move forward in July

According to the Commodity Market Analysis System of SunSirs, domestic corn prices rose first and then fell in July, with overall fluctuations moving forward. On July 1st, the average price of third class yellow corn was 2,760.00 RMB/ton, and on July 31st, the average price was 2,771.43 RMB/ton, with a monthly 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.

Starting from mid July, after the rise in corn prices, the intention of grain storage trade entities to cash out increased. In addition, the increase in policy corn investment has led to a slight rebound in domestic corn market supply. The tight supply situation in the corn market has been alleviated to some extent, and ports and deep processing enterprises have slightly lowered corn purchase prices, resulting in a slight decline in overall domestic corn market prices. Supported by the decreasing amount of high-quality and tradable surplus grain, the overall domestic corn price weakened and stabilized at the end of the month, leading to a slight fluctuation.

In July, domestic egg prices bottomed out and rebounded, rising 14.44% within the month. Domestic pig prices bottomed out and rebounded, rising 13.51% within the month. The breeding industry market slightly rebounded, and the loss situation in pig farming has been alleviated. The rebound in pig to grain ratio will to some extent promote farmers to supplement their livestock, and the domestic pig stock is expected to stop falling and stabilize.

SunSirs corn product analysts believe that the launch of the new season corn will still take some time. The high temperature and rainy weather in China have affected transportation, and policy investment has decreased. There are fewer high-quality grain sources available for circulation, and trading entities are reluctant to sell at high prices. Feed demand is still weak, and the expectation of a high yield of the new season corn is relatively high. Long short game, and the domestic corn market prices will continue to fluctuate at high levels in August.

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