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June Corn Prices Still Would Maintain at Low Level

China Agriculture Report By CnAgri2018-06-13 14:29:16China Agriculture Report Print Since the starting of auction of temporarily-stored corn in April, domestic corn market prices have started to go down. It was predicted corn prices still would maintain at a low level in June.
First, grain auctioned still is the main supply on the market. By June 8th, the trading volume of temporarily-stored corn auctioned had totaled 43 million MT, of which 30 million MT of corn hadn’t been warehoused out. It means corn auctioned will be available on the market in massive quantities, and the pressure of supply would be great.
Second, the restrictions on substitute imports possibly would be loosened. During January-April 2018, the imports of corn, sorghum and barley reached 0.94 million MT, 2.33 million MT and 3.04 million MT respectively, all higher than those in the same period of last year. Currently, China has canceled anti-dumping and anti-subsidy investigations on sorghum. Along with continuing of China-U.S. trade negotiations, China possibly would loose the restrictions on imports of substitutes such as sorghum, barley and DDGS.  
Third, new-season wheat is about to be available on the market. Due to poor weather conditions during the production period, the proportion of germinated wheat would ascend. This part of wheat most would be used for production of poultry feed with relatively low requirements, which would further squeeze the demand room for corn. 
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