Increasing storage efforts will stabilize corn prices

At present, summer sown corn in Henan, Shandong, Hebei and other regions, as well as spring sown corn in Northeast China, have entered the harvest and concentrated market period, and the open scale price has declined compared to the same period last year. At the same time, corn market traders, warehousing companies, and others have a more obvious wait-and-see attitude. Market participants believe that with the gradual increase in corn storage and harvesting efforts, corn prices will tend to stabilize.

It is reported that in response to the recent sluggish corn prices, relevant departments have introduced measures to stabilize market prices. Since the end of September, the scale of domestic corn harvesting and storage has been continuously expanding. At the same time, the market predicts that the quantity of imported corn and its substitutes in China will decrease in the future. In addition, domestic pork prices are still hovering at a high level. Market participants expect that the domestic corn market prices will stabilize in the later stage, and the income of grain farmers will be guaranteed.

Chai Yinfeng, the general manager of Heilongjiang Wudalianchi Yingfeng Grain Trading Co., Ltd., told reporters that currently, grain enterprises in various parts of Heilongjiang Province have increased their efforts to purchase new season corn. Among them, large state-owned grain depots have also carried out the purchase of corn regulation reserves. Central Reserve Grain Jiamusi Direct Warehouse Co., Ltd. will increase the scale of domestic corn storage by 105000 tons and start weighing and purchasing from October 10th. The warehouse purchases national standard third class and above standard products, and the 2024 domestic corn to warehouse price is 2040 yuan/ton, slightly higher than the current mainstream market price, with strong market guidance.

According to the reporter's understanding, since October, several large state-owned warehousing enterprises in the main production and sales areas of corn in China have started to purchase corn, which will to some extent support the price of corn. On October 8th, the Inner Mongolia branch of the Central Reserve Grain Company bid to purchase 70528 tons of corn for 2024, with a transaction volume of 62526 tons and a transaction rate of 89%; On October 9th, the Central Reserve Grain Zhejiang Branch bid to purchase 29653 tons of corn for 2024, with a transaction price ranging from 2354 to 2416 yuan/ton.

Since mid September, the weather in Henan has been sunny, which is conducive to the harvest and drying of corn and peanuts. In the early stage of the new season's corn market, due to unfavorable market prices, many farmers chose to hold their stocks and wait for the price to rise. Now that prices have stabilized and rebounded, farmers have started to sell one after another, and the amount of corn on the market continues to increase. "Zhu Xiaowei, a corn trader in Huaxian County, Henan, told reporters that the local corn market has entered a stage of strong buying and selling, and it is expected that the purchase price will continue to rise slightly.