The Corn Price Was Still Volatile Under the Launch of Both Stored Corn and New Corn, and the Average Corn Price Was Lower Than Last Month

After entering September, the temporary corn reserve at auction continued to launch, and new corn would launch successively in the Huanghuai region and North China. As a result, the market was not as tight as before in September, leading to a downward trend of corn price. However, due to large areas of lodging caused by three typhoons in the Northeast, new corn production has high possibility to decrease. Since mid-September, corn spot prices have rebounded. Overall, the average corn price in the production and marketing areas in September was lower than last month, at 2,336 yuan/ton, a decrease of 27 yuan/ton, or 1.2% over the previous month.
 
In September, the release of temporarily stored corn increased, so the supply of corn in the northeast corn market tended to increase. Moreover, grain-consuming companies lowered the purchase price of corn. In September, the monthly average price of corn in Northeast China was 2,256 yuan/ton, a 1.5% decrease of 35 yuan/ton MoM.
 
Some new early maturing corn in North China is going on sale sporadically. However, local starch, alcohol, and other deep-processing enterprises in this area have returned to production after summer maintenance. Therefore, the corn demands in the North and Huanghuai regions have increased in September, and corn prices there had the smallest drop. In detail, the average local corn price was 2,362yuan/ton, a decrease of RMB 5/ton, or 0.2% over the previous month.
 
Corn prices of domestic trade in southern ports have been adjusted downwards in line with the downward price in production areas, and the arrival of imported corn and substitutes has increased. So, corn prices in these sales areas fell to 2,414 yuan/ton in September, seeing a 1.3% decrease of 33 yuan/ton month over month.
 
In October, the new corn supply on the market will increase along with the launch of temporarily stored corn. Therefore, it is more difficult for corn prices to keep rising; however, due to the decreasing corn production in typhoon-stricken areas of Northeast China, the corn market will tend to be tight irreversibly next month, and the price of new corn will have a significant decline.