Chinese farmers hold back corn sales amid low prices

Chinese farmers began holding back corn sales in late October 2026 in anticipation of higher prices, helping to halt the decline in domestic market quotations. According to SunSirs, the average price of Grade 3 yellow corn stood at 2,174.29 yuan/t on October 30, compared with 2,205.71 yuan/t at the beginning of the month. Thus, despite a slight recovery in late October, corn prices declined by 1.42% over the month.

The main pressure on prices in the first half of October came from increasing supplies of newly harvested corn from northeastern China. The arrival of new-crop grain allowed ports and deep-processing enterprises to replenish inventories and lower procurement prices. Additional pressure came from cheaper imported substitutes and weak demand from feed producers.

The prolonged decline in corn prices prompted Chinese farmers to limit grain sales in anticipation of a further price recovery. As a result, market supplies decreased and trading activity weakened. To secure sufficient volumes, ports and processing enterprises began raising procurement prices slightly, contributing to market stabilization in late October.

Meanwhile, conditions in the livestock sector continue to weigh on demand for feed corn. In October, hog prices in China fell by 8.82%, while egg prices declined by 6.53%. Losses in the hog farming industry are accelerating capacity reductions, potentially weakening feed grain consumption in the coming months.

SunSirs analysts do not expect a significant increase in corn prices in November. Despite farmers holding back sales, ample new-crop supplies, sufficient inventories at processing plants and weak feed demand will continue to limit price growth. Analysts expect corn prices to remain at relatively low levels, fluctuating within a narrow range.

Tags: corn, China