SunSirs: China Domestic Corn Prices Fluctuated weakly in November

According to the Commodity Market Analysis System of SunSirs, the domestic corn price rose first and then fell in November, with overall weak fluctuations. On November 1st, the average price of third class yellow corn was 2,634.29 RMB/ton, and on November 30th, it was 2,617.14 RMB/ton, a decrease of 0.65% within the month.

In November, many regions in Northeast China experienced snowfall, which affected the transportation of corn from the production area. In addition, the continuous decline in corn prices led to trading entities being reluctant to sell and raising prices, resulting in an overall tight supply of corn in the market. To stimulate the arrival of goods, downstream enterprises raised the purchase price of corn, driving the weak and stable domestic corn market prices to slightly rebound.

With the gradual improvement of weather, the market volume of corn in the production area continues to rise, and a high yield of corn in the new season has become a foregone conclusion. Downstream trading entities have a strong wait-and-see attitude, and downstream animal husbandry feed demand continues to be sluggish. Imported corn and its substitutes continue to arrive in Hong Kong, and the domestic corn market supply is relatively loose. The overall price of corn in the market is under pressure and fluctuates weakly.

In November, domestic egg prices bottomed out and rebounded, rising by 5.64% within the month. Pig prices fluctuated downward, falling by 0.34% within the month. Overall, the breeding industry is still operating at a low level, and the market remains sluggish. The pig breeding industry continues to be in a loss making situation, and farmers continue to make up for low prices. The demand for corn feed in the future will continue to be low.

The corn product analyst from SunSirs believes that the demand for animal husbandry continues to be sluggish, the processing profits of deep processing enterprises continue to shrink, the overall procurement of corn downstream is more cautious, the new season corn is abundant, the market volume of corn continues to increase, imported corn and its substitutes continue to arrive in Hong Kong, and the overall supply of domestic corn market is becoming more loose. The pressure of strong market supply and weak demand is difficult to alleviate in the short term, It is expected that the domestic corn market prices will continue to operate under pressure, with a moderate to weak trend in November.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.