corn price after the snowing days

Since the end of November, the price of tidal grain in northeast China has set a new record after the rain and snow, led by the large price increase of corn processing enterprises in Northeast China. The price of moisture tidal grain in 30% of China has exceeded 1 yuan/jin (around 0.95 yuan/jin in Heilongjiang), and the national future spot price of corn market is approaching the record high in the second half of 2014.


Northeast Corn Market "leads the pack"

Since the end of November, northeast corn performance "eye-catching", the tide grain price has broken through 1 yuan/jin. At present, the purchase price of Jilin Siping New Tianlong corn is RMB 2,233.4 / ton with 25% moisture and RMB 2015.4 / ton with 30% moisture. The purchase price of Cofco Gongzhuling Huanglong Corn is RMB 2,012 / ton with 30% moisture and THAT of CoFCO Songyuan corn is RMB 1,958 / ton. The purchase price of 15% moisture corn of North Port is RMB 2,480 ~ 2,540 / ton, and the trimmed price is RMB 2,520 ~ 2,580 / ton. The purchase price of traders has risen to a high level, and the room for further increase is limited. The high price of southern port suppressed the purchase demand of forage enterprises, and the transaction did not significantly increase. The substitute products formed a restriction on the spot price. The transaction price of 15% moisture corn mainstream in Shekou Port was 2590 ~ 2620 yuan/ton.


Processing companies are raising prices again

In the last week of November, after the rain and snow, deep-processing enterprises in northeast China raised the price again, and some deep-processing enterprises often raised the price of 100 yuan/ton, which basically "stopped" the thought of new grain outflow. On November 26, the purchase price of 14% moisture third-class and above corn from Jilin Songyuan Cargill Bio-Chemical was 2350 yuan/ton, up 100 yuan/ton from the 25th day. The corn purchase price of jilin Cofco Gongzhonghualing Company and Huanglong Company at national standard grade 3 and above is 2,450 yuan/ton, up by 50 yuan/ton. The corn purchase price of Grade 3 and above is rejected by the company. Since November, the corn purchase price has increased by 120 yuan/ton, 720 yuan/ton higher than that of the previous year. Heilongjiang Longfeng Third-class new corn listed purchase price 2330 yuan/ton, up 12 yuan/ton; Longjiang CofCO bio-Chemical 15% Moisture new corn listed purchase price 2320 yuan/ton, up 10 yuan/ton; Suihua Haotian 15% moisture new corn listed purchase price 2350 yuan/ton, up 14 yuan/ton. Corn prices for deep-processing companies in Shandong and elsewhere have barely budged after standing at 2,600 yuan per ton.

At present, domestic starch consumption is about to enter the off-season, but continue to maintain a profit. Rough estimates show that companies in western Heilongjiang earned 115 yuan per tonne of corn ethanol last week, while companies in Jilin earned 120 yuan per tonne of corn starch, and companies in Shandong earned 7 yuan per tonne of corn starch.


Corn sales have been mixed

So far, the sales progress of corn for farmers in Heilongjiang, Jilin and Inner Mongolia is between 20% and 30%, while that for farmers in Liaoning is over 30%. The sales progress of corn for farmers in North China is between 20% and 50%, while that for farmers in Shandong is relatively slow compared with the same period last year. However, surveys by industry insiders show that in parts of Heilongjiang province where deep-processing companies are concentrated last week, corn sales are well ahead of the national average: beian 88.5 per cent, Fujin 59 per cent and Suihua 39 per cent.


The market enters long - short game stage

At present, the domestic corn market as a whole has entered the stage of long-short game, and the deep processing enterprises in northeast China collectively raise the price of grain sharply, pushing the price of grain to set a new record, which is amazing. But prices have risen to high levels and are at a time when farmers are selling grain at a peak, so price increases are expected to be limited. Since the second quarter of this year, the amount of Corn purchased by China from the United States has increased significantly. In the later period, China may import about 5 million tons of Ukrainian corn, and the amount of corn imported by China in 2020/2021 (October/September) may reach 20 million tons. Imports will help increase domestic corn supply and stabilize market prices.