SunSirs: China Domestic Corn Prices Fluctuated Strongly in August

According to the Commodity Market Analysis System of SunSirs, the domestic corn price fluctuated strongly in August. On August 1st, the average price of third class yellow corn was 2,770.00 RMB/ton, and on August 31st, it was 2,830.00 RMB/ton, an increase of 2.17% during the month.

Affected by the heavy rainfall in the northern region caused by the typhoon at the beginning of the month, the expected high yield of domestic corn has declined, and the listing of new season corn has been hindered. The high-quality and tradable grain sources in the domestic corn market are gradually decreasing, and the price of Linchi wheat has significantly rebounded. The first round of targeted rice auctions has received a significant premium, and the mentality of grain trading entities is becoming stronger. The arrival volume of corn from ports and downstream deep processing enterprises continues to decline, and enterprises have raised prices to replenish their inventory. Supported by many positive factors, The domestic corn market prices continued to rise and rebound in August.

After some companies' corn inventory was effectively replenished in the middle of the year, the purchase price of corn was slightly lowered, leading to a slight decline in the domestic corn market price. In late August, the breeding industry continued to improve, and the price of deep processed products continued to rise. Grain trading entities continued to be optimistic about the future market, and the domestic corn market entered a stage of tight supply. Supported by downstream demand, ports and deep processing enterprises continued to increase the purchase price of corn, Drive the domestic corn market prices to continue to rise.

In August, domestic eggs were operating at a relatively high level, rising by 14.60% within the month. The price of live pigs stabilized, rising by 6.22% within the month. The overall market of the breeding industry rebounded, and the profit margin for breeding continued to increase. The enthusiasm of farmers to supplement their livestock has rebounded. In the future, the domestic pig stock will stop falling and rebound, which will to some extent support a slight rebound in demand for corn feeding.

SunSirs corn product analyst believes that the overall domestic corn market is in a stage of tight supply, and it is difficult for the new season corn to enter the market in large quantities in September. Supported by many positive factors, it is expected that there will still be some upward space for the domestic corn market prices in September.

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