Corn price began to fall from a high level in August, but the average corn price in production and sales areas was still higher than the previous month

Since the eleventh auction of corn in temporary state storage began on August 6, the average transaction price has gradually decreased. Coupled with the enlargement of the US corn purchase, as well as the upcoming launch of new corn, which has changed the positive mindset towards the corn prices within the market entities. Therefore, the spot price of corn showed a downward trend. However, since the corn price has reached a relatively higher level among recent years, the average price of corn in the production and consumption areas in August was still higher than the previous month, at 2,363 yuan/ton, which exceeded 108 yuan/ton or 4.8% over last month.
 
In August, the corn was successively released from temporary reserve, and accordingly the corn market had an upward trend in supply, and the corn price had entered a high and volatile level. The average monthly price of corn in Northeast China in August was 2,291 yuan/ton, with a 7.3% growth of 156 yuan/ton.
 
The corn supply in North China is increasing. Apart from the released temporary storage, some early-maturing new corn has been launched sporadically. In addition, as the cost of corn has fallen, the prices of deep-processed products such as corn starch and alcohol have dropped significantly. Margins of deep processing enterprises has declined, and the purchase price of the factories has been reduced rapidly. Therefore, the price of corn in Huanghuai region and North China saw the smallest increase in August over last month. In August, the average corn price of Huanghuai region and North China was 2,367 yuan/ton, with a 94 yuan/ton or 4.1% monthly increase.
 
The corn price of the domestic trade in southern ports was adjusted upwards following the price increase in the production area. The August corn price in the sales area was 2,447yuan/ton, seeing an 4.7% increase of 110yuan/ton from last month.
 
In September, new corn in Huanghuai and ​​North regions will be launched successively, as well as the temporary corn reserve will be increasingly released. It is expected that corn prices would continue to show a downward trend. However, due to the established pattern of tight supply and demand for corn, the market price of new corn will have a substantial growth over the same period of last year.