August Corn Prices in the Production and Consumption Areas Went up, but the Growth was Limited

In August, corn buying and selling both are still sluggish. The auction of temporarily-stored corn continued, and the trading rate was descending. However, along with the aggravating of China-U.S. trade frictions, corn won’t be imported in the short term. Influenced by those, corn prices in the production and consumption areas ascended slightly, and reached RMB 1,983/MT on average, up 0.9% or RMB 19/MT from last month.
 
The operating rate of corn further processing companies in the northeast didn’t improve obviously, and they have weak willingness to stock up the materials. Corn stocks at northeastern ports also showed the decreasing trend. However, along with the decreasing of corn stocks at the ports and uncertainty about corn yield, corn prices in the northeast still were higher than last month. The average price of corn in August in the northeast was RMB 1,863/MT, up 0.5% or RMB 10/MT from last month.    
 
In north China and Huang-Huai Region, rainstorm caused by Lekima was not food for the yield of new-season corn, which changes the market expectation. The average price of corn in north China and Huang-Huai Region was RMB 2,085/MT in August, up 1.7% or RMB 35/MT from last month.
 
The supply and demand of corn in the consumption areas of south was sluggish, however, influenced by a reduction in supply of corn in the main production areas and difficulties in imports, corn stocks at the ports of Guangdong also continued to go down, and corn prices ascended slightly. The average price of corn in the consumption areas in August was RMB 2,058/MT, up 0.8% or RMB 16/MT from last month.    
 
In September, new-season corn would be increasingly available on the market in north China and Huang-Huai Region, however, restricted by farming stocks, the growth in demand for corn won’t be great. Besides, before a parade on Oct. 1, further processing companies in north China and Huang-Huai Region would stop or limit production. Corn prices possibly would go down in September.