Chinese feed producers cut corn purchases amid losses in pig farming

China’s corn market remains under pressure in November 2026 due to weak demand from the livestock sector and ample supplies of new-crop grain. Losses in pig farming are discouraging herd expansion and limiting feed consumption, prompting feed mills to restrict raw material purchases. According to SunSirs, feed producers are maintaining corn inventories sufficient for approximately 25 days of operations and avoiding long-term stockpiling.

The low hog-to-grain price ratio is forcing Chinese pig farmers to take a cautious approach to fattening and refrain from further herd expansion. Feed mills are purchasing corn primarily to meet their immediate production needs. Even a slight increase in prices prompts companies to suspend purchases and rely on existing inventories, limiting the potential for grain prices to rise.

Demand from the deep-processing sector also remains subdued due to weak profitability in starch, ethanol and amino acid production. Despite the price advantage of corn starch over cassava starch, substantial inventories of finished products are discouraging processors from increasing raw material purchases. Additional pressure on the market comes from large volumes of imported sorghum and barley, which feed mills can use as substitutes for corn.

Meanwhile, significant volumes of new-crop corn are entering the market from northeastern and northern China. Active grain sales, including high-moisture corn, are limiting price increases. However, the potential for further price declines is also constrained: as grain prices approach production costs, farmers become more reluctant to sell. Additional market support comes from state-owned Sinograin’s grain purchases as part of its reserve rotation program.

In November, the pace of corn sales by farmers will remain the key factor influencing price movements. Increased grain arrivals could trigger further price declines, while rainfall, drying difficulties and stronger state procurement could lead to temporary price rebounds. However, a sustained increase in prices would require a significant recovery in demand from feed mills and the pig farming sector, or a reduction in supplies due to adverse weather conditions. Without such developments, corn prices in China are likely to continue fluctuating within a relatively narrow range.

Tags: China, corn, pig