The Process of Purchasing New-Season Corn was Almost the Same as That of Previous Years, Why Did Corn Prices Keep Ascending During the National Day?

By CnAgri 2020-10-12 17:06:51 Print Tel:861064402118-822 Email:

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During the National Day this year, most of autumn harvesting crops generally enter the period of large-scale harvesting in the north, and the process of harvesting was almost the same as that of previous years. Besides, Heilongjiang Agriculture and Rural Department drew up “7 Golden Rules” to speed up the work of autumn harvesting. “Advice of Promoting the High-Quality Development of Livestock Industry” released by the State Department referred to adjust and optimize the structure of feed formula and to increase the volume of corn and soybean meal substitutes. However, during the National Day, corn market prices still showed the increasing trend, especially the purchase prices of most further processing companies in the northeast all increased compared to the National Day. So, why did corn prices during the National Day keep ascending?
First, influenced by the typhoons, the work of harvesting corn beaten down by typhoons has certain challenges. The processing of harvesting corn beaten down is slow, and some growers only employ the workers, whose labor costs increase to RMB 240-260/day from RMB 200/day in the previous period, so corn costs increased. 
Second, after previous auctions, the stocks of grain reserves bottomed. Some state-owned grain depots purchased grain in advance, increasing the psychological expectations of rising prices. Of which Heilongjiang Sinograin Hegang Depot begun to purchase new-season grain from October 5th, and the prices of grain (third-grade and above) arrival at warehouses were RMB 2,070/MT, pushing up the purchase prices of some further processed prices in the northeast. 
Third, except imported corn, sorghum and barley, and homemade paddy and wheat with a long storing time and relatively low prices, reducing corn substitutes only can bring certain supplementary role.  

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