SunSirs: Corn Prices Continued to Be Weak This Week (October 16-20)

Price trend

According to the Commodity Market Analysis System of SunSirs, domestic corn prices continued to decline this week. At the beginning of the week, the average price of third class yellow corn was 2,711.43 RMB/ton, while the average price over the weekend was 2,671.43 RMB/ton, a decrease of 1.48% during the week.

Analysis review

In mid October, the market volume of corn in Northeast China's production areas continued to increase, and the new season's high yield of corn had become a foregone conclusion. Downstream enterprises had a strong wait-and-see attitude and continued to lower the purchase price of corn. Grain trading entities were cautious in purchasing and selling, and corn prices continued to be weak. Grassroots farmers had a strong willingness to sell grain, and the domestic corn market supply continued to increase. Under the pressure of strong market supply and weak demand, the domestic corn market prices continued to be weak and downward.

This week, domestic egg prices continued to decline weakly, falling by 2.45% during the week. Pig prices fluctuated from a low level and rose slightly by 0.64% during the week. The breeding industry market fell again, and the enthusiasm of farmers to supplement their livestock continued to decline. In addition, the substitution effect of malt wheat was still present, and there is limited room for a rebound in corn feed demand in the future.

Market outlook

Corn product analysts from SunSirs believe that in the short term, under strong market supply and weak demand pressure, there is still some room for price decline in the domestic corn market.

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