Corn Prices Would Go Down in the Near Future, but the Decline Would be Limited

By CnAgri2018-06-08 14:44:45 Print Since the confirmation of auction of temporarily-stored corn in April, corn market prices have ended the growth trend and started to decrease. In the last two months, spot prices of corn have decreased by 100 RMB/MT or 5%. It was predicted that corn prices would go down in the near future. The main reasons are:
(1) Temporarily-stored corn would be warehoused out in large quantities in the near future and the supply of corn would increase. 60% of 27 million MT of corn dealt in April still haven’t been warehoused out. Along with the increasing of warehouse-out, the pressure of corn supply would increase obviously.   
 
(2) The demand for corn won’t ascend obviously. Due to hog and poultry farming falling into loss, the terminal demand for feed corn is restricted. In the northeast and north China and Huang-Huai Region, some further processors have abundant stocks, especially along with temporarily-stored corn arrival at the factories, the companies possibly would stop purchasing or cut down purchase prices. 
 
(3) Along with the relieving of China-U.S. trade frictions, the substitutes of imports from the U.S. such as sorghum also would increase, squeezing the demand room of corn.
 
However, because of corn planting areas less than the expectations and the drought during the spring-ploughing period in the northeast, corn seedling emergence was influenced, resulting in a worry about yield of new-season corn. So corn prices would see a limited decline in the near future.