China corn prices remain stable amid weak feed demand

Corn prices in China showed only minor fluctuations last week, remaining largely stable within a narrow range. According to data from SunSirs, the average price of Grade 3 yellow corn stood at 2,298.57 RMB per tonne both at the beginning and end of the week, indicating overall market stability.

As late June approached, the entry of new wheat into the market was gradually coming to an end, while trading volumes at state grain auctions weakened. At the same time, traders holding stocks showed a stronger reluctance to sell, which helped support prices and reduced bearish pressure in the corn market.

Despite this, demand from the livestock sector remained weak. Egg prices fell by 6.45% over the week, while live hog prices continued to stay at low levels, declining by a further 0.53%. The Chinese pork industry remains under significant financial pressure, further limiting demand for corn-based feed.

The market continues to be shaped by opposing forces: tight selling intentions and relatively stable supply on one side, and weak downstream consumption on the other. This balance has prevented any strong directional movement in prices.

SunSirs analysts expect corn prices in China to remain within a narrow range in the short term, as the tug-of-war between supply and demand is likely to persist without a clear catalyst for a sustained price trend.