March Average Corn Prices Didn’t Change Greatly, and the Prices in the Production and Consumption Areas Saw Different Growths and Declines

In March, along with the controlling on new coronavirus outbreaks and the recovering of traffic, corn buying and selling was gradually active. The demand for corn from feed and further processing companies improves, and the traders in the production areas are optimistic about corn prices and are more willing to purchase, so the farms have sold corn in large quantities. However, low-price corn imports arrived at the ports in large quantities, cutting down corn market prices in the consumption areas. The average price of corn in the production and consumption areas was RMB 1,949/MT in March, down 0.2% or RMB 3/MT from last month.  
 
Northeast still is the area where the growth in corn prices is the most obvious. The demand from further processing was great, and the traders increased their purchase volume, especially Sinograin has started to purchase corn for rotation in some areas of northeast in middle and late March, which all boosted local prices. The average price of corn in the northeast was RMB 1,850/MT in March, up 2.1% or RMB 40/MT from last month.   
 
North China and Huang-Huai Region still is the area where corn prices are high. The profits of further processing companies in March were relatively low, and the affordability of high-price corn declined. Therefore, the average price of corn in north China and Huang-Huai Region in March was RMB 1,960/MT, down 1.0% or RMB 19/MT from last month. 
 
In March, the number of corn arrival at southern ports improved, and the imports of corn and substitutes increased year on year, so corn stocks at the ports went up and corn quotations descended. Corn prices in the consumption areas reached RMB 2,039/MT in March, down 1.4% or RMB 28/MT from last month.