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After New Corn Availability on the Market, the Prices Still Would Keep Ascending

China Agriculture Report By CnAgri2018-09-12 16:49:49China Agriculture Report Print Although new corn in 2018 possibly would be promising, yet the prices would keep ascending after new corn availability on the market.
First, temporarily-stored corn stocks descended obviously, which is irreversible. By August 10th, the trading volume of temporarily-stored corn stocks had reached to 62 million MT, with a one-third decline, and the pressure from stocks reduced obviously. After that, along with the increasing gap between supply and demand, temporarily-stored corn stocks won’t go up. 
Second, although new corn output possibly would be a bit higher than that of last year, but the decline was not great. BOABC predicted corn output would see a year-on-year increase of 3 million MT. But, judging from the long term, along with a reduction in corn planting areas in Sickle-Shaped Region and the support for soybean production resulting from China-U.S. trade frictions, domestic corn output won’t keep ascending. 
Third, the domestic demand for corn shows the increasing trend, and it would be normal that the output is less than the demand. In the last two years, owing to strong enthusiasm to invest in corn further processing projects, corn further processing capacity has increased rapidly and would reach 10 million MT in 2018, and the increasing trend would continue until 2020. The output of corn in 2018/19 would be less than the demand, which would continue.
After the change that the output is less than the demand, the prices also would maintain at at a high level after new corn availability on the market.
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