According to the Commodity Market Analysis System of SunSirs, the overall price of domestic corn fluctuated upwards in May 2024. On May 1st, the average price of third class yellow corn was 2,298.57 RMB/ton, and on May 31st, it was 2,328.31 RMB/ton, with an overall increase of 1.31% during the month.

Entering May, supported by stable supply and demand, the overall price of corn in the Northeast production area remained stable and advanced. In mid month, some regions saw the launch of new wheat, and trading entities shifted their focus to new wheat trade, resulting in a continuous decline in corn arrivals. Deep processing enterprises and port areas saw a sharp decline in corn arrivals. In order to stimulate arrivals, deep processing enterprises in Shandong, North China, and other regions raised prices to replenish inventory, driving the domestic corn market price to continue to rise.

At the end of May, the domestic corn market gradually recovered, and manufacturers lowered their corn purchase prices one after another after completing the acquisition task. The overall price of domestic corn market stopped rising and slightly declined.

In April 2024, China imported 1.18 million tons of corn, a year-on-year increase of 17.6%; From January to April, China imported a total of 9.08 million tons of corn, a year-on-year increase of 6.5%. The continued arrival of low-priced imported corn and its substitutes in Hong Kong will further suppress the domestic corn market prices.

In May, domestic egg prices rose significantly, with a 19.68% increase within the month. Pig prices rebounded significantly, with a 17.31% increase within the month. The overall recovery of the breeding industry has led to a profitable situation, and the enthusiasm of farmers to replenish their pens continues to rise, which will to some extent support the recovery of corn feed demand in the future.

SunSirs corn product analyst believes that imported corn continues to arrive in Hong Kong, and the domestic corn market has sufficient supply. The price of wheat in Linchi continues to decline, and the substitution effect for feed is becoming stronger. Downstream demand is more cautious, and many bearish factors are suppressing it. It is expected that the domestic corn market price will continue to rise in June without sufficient momentum, and the overall price will fluctuate slightly at the current level.

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