Setting Northeastern Corn Auction Prices at RMB 1,250-1,350/MT is Reasonable

By CnAgri2017-04-20 09:21:17 Print

Recently, it was reported that temporary corn reserves would be available on the market in May. Of which the upset price of corn auction in 2013 ranged at RMB 1,250-1,350/MT (RMB 1,250/MT in Heilongjiang, RMB 1,300/MT in Jilin and RMB 1,350/MT in Liaoning); the upset price of corn auction in 2012 ranged at RMB 1,000-1,300/MT. BOABC’s analysts think this price is reasonable, which can’t excessively pressure market, can assure certain transaction rate and also can avoid corn imports flooding into the domestic.

Entering April, northeastern further processing companies are gradually adjusting up corn purchase prices, generally ranging at RMB 1,450-1,500/MT. The auction prices are RMB 150-200/MT less than corn purchase prices by further processing companies. With addition of subsides, there is no big difference between auction prices and purchase prices. So some companies that have low stocks would be active to participate in auctioning temporary corn reserves.

Along with corn prices at northeastern ports ascending, the settlement prices of corn generally ranged at RMB 1,630-1,650/MT this week; the settlement prices of corn at the ports of Guangdong had reached RMB 1,740-1,760/MT. At that price, imported corn from America has owned price advantage, so the imports have started to increase recently. After the starting of temporary corn auction, the supply of corn would increase in the northeast and the prices also would lower, which would avoid corn imports flooding into the domestic.