July Corn Prices in the Production and Consumption Areas Saw Different Growths and Declines, and the Overall Prices were Less than Last Month

In July, the demand was weak, but corn was in an abundant supply, the transaction rate of temporarily-stored corn continued to go down, and the premium was decreasing, dragging down the trend of corn market prices. In July, corn prices in the production and consumption areas saw different declines and growths, but the overall prices were less than last month. The average price was RMB 1,965/MT, down 0.3% or RMB 5/MT less than last month.
 
Along with an obvious decline in materials stocks of further processing companies in the northeast, a decline in corn stocks at northeastern ports and the support of corn costs, the average price of corn in the northeast in July was RMB 1,853/MT, up 0.6% or 11 RMB/MT from last month.    
 
The supply of corn in north China and Huang-Huai Region was relatively tight. Influenced by an increase in corn prices in the northeast, corn purchase prices in the local areas generally increased. In July, the average price of corn in north China and Huang-Huai Region was RMB 2,051/MT, up 1.1% or RMB 23/MT month on month.  
 
Influenced by African swine fever in south China and the southwest, the demand for feed was aggravating and corn sales at the ports of Guangdong were sluggish, so the quotations were weak. The average price in the consumption areas in July was RMB 2,042 /MT, down 1.4% or RMB 28 /MT from last month.     
 
In August, along with the continuing of auctioning temporarily-stored corn and spring corn availability on the market in small quantities in the southwest, corn still would be in an abundant supply; meanwhile, further processing companies stop production for an overhaul and the demand for feed won’t improve obviously, and the demand for feed also won’t ascend obviously, so corn prices in August won’t go up; however, the upset price of temporarily-stored corn increased, which also decides a limited decline in corn market prices.