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February Corn Prices Would Stabilize

China Agriculture Report By CnAgri2018-02-07 15:52:49China Agriculture Report Print Influenced by a drop in corn production, and the predication on an oversupply of corn was changed and the farmers were less willing to sell, so the traders and further processing companies all raised purchase prices. The national average price of corn in January ascended to RMB 1,856/MT, up 4.3% or RMB 77/MT from last month. But February corn prices would stabilize. The main reasons are as follows:  
(1)Corn auctioned was available on the market in large quantities, and there was a signal that the prices would drop. In January, China Grain Reserves Corporation auctioned corn ten times, with planned auction volume at 309,000 MT and actual transaction volume at 200,000 MT; besides, auction regions were extending to producing areas from consumption areas, which effectively squeezed corn stocks out of production areas and ports, and relieved the situation of a tight supply.
(2)Along with the coming of Chinese New Year, further processing and feed companies are off duty in succession, and buying and selling both are sluggish. And meanwhile, the companies have stricter requirements on quality of corn, which slows down the progress of purchase.
(3)However, along with the change in predication on a tight supply, the farmers and traders were less willing to sell and to reduce selling prices. 

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