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Along with the Increasing Warehouse-out of Temporarily-Stored Corn Auctioned, May Corn Prices in the Producing and Consu

China Agriculture Report By CnAgri2018-06-08 14:38:22China Agriculture Report Print Along with the accelerating of cutting down temporarily-stored stores, 8 million MT of temporarily-stored corn is auctioned every week. Especially along with the increasing warehouse-out of corn dealt previously, the growing of temperature and the starting of spring ploughing, more corn was available on the market and corn was in a loose supply. However, owing to a fall in hog stocks, corn market prices in May continued to go down. The national average price of corn in May descended to RMB 1,844/MT, down 2.5% or RMB 47/MT from last month.    
Northeast is the main region where temporarily-stored corn is warehoused out, so the decline in corn prices in the northeast in May was biggest. The average price of corn in the northeast in May was RMB 1,687/MT, down 3.3% or RMB 57/MT from last month. 
Owing to an increase in corn further processing margins, further processing companies in north and Huang-Huai Region adjusted purchase prices but the overall decline was not obvious. The average price of corn in north China and Huang-Huai Region decreased to RMB 1,927/MT, down 0.7% or RMB 15/MT from last month.
Along with a stable increase in stocks at southern ports and an abundant supply of substitutes but a weak demand from farming, the average price of corn in the consumption areas in May decreased to RMB 1,960/MT, down 2.8% or RMB 56/MT from last month.
In June, along with a loose supply, a weak demand from farming, the termination of anti-dumping and anti-subsidy investigations on sorghum imports from the USA and an increase in sorghum substitute imports, corn prices would see insufficient motivation for an growth. But, due to an increase in planting costs of new-season corn and the hype during the growing period, the decline in corn prices would be limited.  

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