China’s corn prices continue to rise, but weak demand limits gains

Domestic corn prices in China continued their gradual recovery in early November 2026, supported by farmers’ reluctance to sell and increased purchasing activity among processing companies. According to SunSirs, the average price of Grade 3 yellow corn rose by 0.72% over the past week, from 2,174.29 to 2,190 yuan/ton. Despite the positive trend, price gains remain modest due to ample grain supplies and weak demand from major consumers.

One of the main factors supporting prices has been farmers’ reluctance to sell corn at current levels. With the arrival of November and gradually falling temperatures, farmers in northeastern China, one of the country’s key corn-producing regions, continue to hold back part of their harvest in anticipation of better selling prices. Additional market support comes from grain purchases aimed at replenishing and rotating government reserves in certain regions.

Meanwhile, lower corn arrivals at ports and deep-processing hubs are prompting companies to gradually raise purchase prices to replenish inventories. Limited selling activity is creating localized supply pressure, although overall corn availability remains sufficient. According to analysts, the combination of farmers withholding supplies and government reserve purchases is currently the main driver of the short-term recovery in grain prices.

However, conditions in China’s livestock sector continue to limit demand for feed corn. Over the past week, domestic hog prices declined by 2.6%, while egg prices increased by 3.48%. The pig farming industry remains under significant financial pressure due to a prolonged period of low prices and widespread production losses. This limits the potential for a recovery in compound feed demand and creates additional risks for the feed grain market.

SunSirs analysts expect further gains in Chinese corn prices to remain limited. Despite support from farmers delaying sales and government procurement, market fundamentals continue to reflect ample supplies and weak demand from processing and livestock enterprises. Under these conditions, the short-term price recovery may continue, but a more substantial increase would require stronger demand from domestic consumers.

Tags: China, corn