Corn prices in China fluctuate: market moves into oversupply

Domestic corn prices in China stopped growing last week and fell slightly, although the market as a whole continues to move in a sideways trend. According to the SunSirs analytical system, the average price of third-grade corn at the beginning of the week was 2,337.14 yuan per ton, and at the end — 2,334.29 yuan, which is 0.12% less.

One of the key reasons for the pressure on the market was the increase in the competitiveness of imported substitutes, which are actively entering Chinese ports and partially displacing corn from the feed segment. This led to a decrease in demand for domestic products.

An additional influence is also exerted by the seasonal factor: with the approach of the spring sowing campaign in northeastern China, farmers are more actively selling grain stocks. As a result, the supply on the market has increased, which gradually shifts the balance towards surplus.

At the same time, demand from the livestock industry remains weak. Pork prices fell 3.71% last week, and the pig industry’s losses continue to rise. This further constrains feed purchases, including corn, despite a slight increase in egg prices.

Analysts expect price pressures to persist in the near term. The influx of import alternatives and weak demand from the feed industry will create a supply surplus, which could lead to a further moderate decline in corn prices in China’s domestic market.

Tags: corn, prices