SunSirs: China Domestic Corn Prices Continue to Weaken and Decline in October
November 02 2023 11:30:03 SunSirs (Selena)
According to the Commodity Market Analysis System of SunSirs, the overall price of domestic corn continued to fluctuate and decline in October. On October 1st, the average price of third class yellow corn was 2,788.57 RMB/ton, and on October 31st, it was 2,632.86 RMB/ton, a decrease of 5.58% during the month.
In October, corn from Northeast China's production areas has been listed one after another. After the National Day holiday, the market volume of corn in the production areas has gradually increased, and the domestic corn market is seamlessly connected with new and old markets. Downstream trading entities have a strong wait-and-see attitude, and manufacturers have gradually lowered the purchase price of corn after completing the acquisition task. The overall domestic corn market has entered a stage of strong supply and weak demand, and the overall price of corn market is under pressure and has fully declined.
Starting from the middle of the year, corn from the Northeast production area has entered the market comprehensively, and the high yield of the new season corn has become a foregone conclusion. Downstream enterprises are more cautious in purchasing and selling, while deep processing enterprises continue to lower the purchase price of corn. Trade entities have poor inventory willingness, and the continuous decline in domestic corn prices has triggered grassroots farmers to sell grain and monetize. The domestic corn market supply continues to increase, and the pressure of strong market supply and weak demand continues to increase. The domestic corn market prices continue to decline in a weak manner.
In October, domestic egg prices fell significantly, with a significant drop of 15.59% during the month. Pig prices fluctuated and declined significantly, with a drop of 10.29% during the month. The breeding industry market also experienced a significant decline, with some regions experiencing a resurgence of African swine fever. Farmers' intention to sell and monetize increased, and the overall stock of live pigs will continue to decline. In the future, there is insufficient momentum for the recovery of corn feed demand.
SunSirs corn product analyst believes that corn from the production area has fully entered the market, and the overall supply of domestic corn market is relatively loose. The demand for breeding industry continues to be weak, and the demand for deep processing is generally cautious. Farmers' willingness to sell grain remains unchanged, and the pressure of strong supply and weak demand is difficult to change in the short term. It is expected that there will still be some room for price decline in the domestic corn market in November.
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