SunSirs: China's Corn Prices Continue to Rise (July.20-24)

1. China's corn price trend

According to SunSirs monitoring, domestic corn prices continued to rise last week. The average price of third-grade yellow corn at the beginning of the week was 2,127.14 yuan/ton, and the average price of the weekend was 2,155.71 yuan/ton, an increase of 1.34%.

2. Market Analysis

Entering late July, the State Reserve Auction continued to run normally, and the transaction situation remained high in volume and price. This week, the average transaction price broke through the 2,000 yuan/ton mark and reached 2,017 yuan/ton. The policy transaction price continued to increase, driving the domestic corn market price. With a rebound, the domestic corn market price rose again by 1.34% this week, a sharp increase of 17.43% from the beginning of the year.

Last week, domestic live pig prices dropped slightly by 0.54%, egg prices rebounded sharply by 9.26%, pig prices continued to be high, egg prices bottomed out, and the price of eggs rebounded sharply. The aquaculture market has picked up, and farmers' enthusiasm for replenishment continues. Domestic pig stocks continue With a rebound, the demand for corn forage will gradually rise in the future.

July 23, 2020, the National Grain and Material Reserve Bureau Grain Trading Coordination Center and the networked provinces (autonomous regions, municipalities) National Grain Trading Center organized the National Temporary Storage Corn Bidding Fair, planning to be listed on the National Reserve in 2014, 2015 National Reserve Heilongjiang , Jilin, Liaoning, and Inner Mongolia, three provinces and a district of 3,974,163 tons of corn, 3,974,163 tons of transactions, 100.00% of the transaction, the highest price of 2,380 yuan / ton, the lowest price of 1,710 yuan / ton, the average transaction price of 2,017.00 yuan / ton.

3. Outlook

SunSirs corn product analysts believe that with the support of demand and policy, there is still room for domestic corn market prices to rise in the short term.

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