High-Quality Corn Prices Would Continue Increasing in the Near Future

By CnAgri2017-05-26 10:37:10 Print

Since May, temporarily-stored corn has been auctioned six times for three weeks. The accumulative auction volume was 10.4848 million MT and the actual transaction was 9.2209 million MT, and the average transaction rate was 87.95%. Besides, auctioned corn was warehoused out quickly. Currently, temporarily-stored corn has become an important variety that is traded at southern and northern ports.

Thanks to a high transaction rate and a premium, the auction of temporarily-stored corn didn’t change the increasing trend of corn market prices, and triggered the expectations of a tight supply and an increasing price on future market from traders, feed mills and processing companies, instead. So, since the time of auction, corn prices in the northeast, Huang-Huai Region of north China and southern sales areas have accumulatively increased by RMB 40/MT, RMB 10/MT and RMB 40/MT.

Corn auctioned on the market most is produced in 2013 and even before, which has been exceeded the time and only can be used by further processing companies who have low requirements on quality of corn. Along with new corn consuming, auctioned corn would be gradually becoming the leading variety on the market. Owing to a tight supply, high-quality corn prices also would increase easily.