The new season of autumn grain has purchased a total of 250 million tons, and it is expected that domestic corn demand will rebound by 2025

China Net Finance, January 23rd (Reporter Li Chunhui) Currently, the acquisition of autumn grain during the peak season is accelerating in various regions. According to data from the National Grain and Material Reserve Bureau, the current peak season for autumn grain procurement is progressing smoothly, with active market buying and selling. As of now, a total of 250 million tons of autumn grain have been purchased nationwide.

The progress of autumn grain procurement is faster than last year's active market buying and selling

According to Luo Shouquan, Director of the Grain Reserve Department of the National Grain and Material Reserve Administration, under the guidance of a series of regulatory policies, the grain market expectations are undergoing positive changes. Various enterprises are actively entering the market to purchase, and many feed and deep processing enterprises are increasing their stock quantities before the Spring Festival. The purchase and sales are relatively active, and the purchase progress is faster than last year. While organizing market-oriented procurement, in order to protect the interests of grain farmers, timely implementation plans for minimum purchase prices have been launched in some mid to late rice production areas. As of now, a total of 7 million tons of mid to late rice have been purchased at the minimum purchase price.

He introduced that the overall operation of the grain market is stable, and the price of rice remains stable under the support of the minimum purchase price policy, with obvious characteristics of high quality and good price; The purchase price of corn has rebounded compared to the previous period; Squeezing enterprises and food processing enterprises have increased their efforts to purchase domestically produced soybeans, and prices have remained relatively stable.

Next, we will continue to strengthen market tracking and monitoring, closely monitor market purchasing and sales dynamics, guide localities and relevant enterprises to conscientiously implement storage and control measures, further stimulate the purchasing and sales vitality of multiple entities, and actively promote the grain market prices to remain at a reasonable level, "said Luo Shouquan.

Domestic corn demand is expected to rebound in 2025

Corn is the main feed and industrial raw material, with a long processing industry chain and high market activity. Since the reform of the corn storage system in 2016, downstream feed and processing industries have made significant strides in development.

It is reported that there will be about 4500 feed enterprises in China in 2024, with a feed production of over 300 million tons, of which about 200 million tons will be used for corn. Due to good profits from pig farming in 2024, active replenishment of pig stocks, and continuous increase in meat, poultry, and egg stocks, feed consumption is expected to increase year-on-year in 2025. In addition, there are about 460 grain deep processing enterprises in China. With the decrease in processing enterprise costs, improvement in profits, increase in operating rates, and significant increase in industrial consumption.

Qi Chiming, an analyst at the National Grain and Oil Information Center, said that according to monitoring by the National Grain and Oil Information Center, the current operating rate of starch processing enterprises in China is around 70%, an increase of 5 percentage points year-on-year. In addition, relevant departments of the country have strengthened the regulation of corn harvesting and storage, and it is expected that the effects of later demand recovery and increased storage and purchase will be further reflected, which will benefit domestic corn prices.