echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Feed Industry News > A day’s rise and fall of tens of yuan a ton, the price on the delivery road will change, corn

    A day’s rise and fall of tens of yuan a ton, the price on the delivery road will change, corn

    • Last Update: 2021-04-18
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    "I have been doing corn trade at the port for ten years.


    Corn traders are difficult to do businesskeK-,

    In previous years, after purchasing corn, Mr.


    "This year will not work, this kind of rhythm is gone.


    "Some time ago, the price of corn fell by about 10% in a month.


    This round of sharp fluctuations in corn prices appeared after March this year.


    Hot money hoarding food intensifies shockskeK-,

    "From a historical point of view, the corn industry has a cyclical trajectory: one big market in 10 years and one small market in 3 years.


    "These people in our food circle are familiar with each other.


      "Last year, there were a lot of unfamiliar figures at the temporary reserve auction.


      Supply and demand are good for corn priceskeK-,

      From a fundamental point of view, Chen Qingqing, a corn analyst at Zhuochuang Information, told Zhongzheng Jun that the domestic corn price has bottomed out in stages recently.


      Looking ahead, he is not pessimistic about corn prices.


      On the other hand, in the face of the continuous decline of downstream purchase prices, the way for traders to pass costs to grassroots farmers has been cut off, and the supporting force of the construction cost of dry grain in the warehouse has begun to appear.


      From the perspective of demand, the demand for downstream corn increased slightly in March, and the overall rate was smaller than the market supply, but the long-term improvement expectation remained unchanged.


      "From a comprehensive market supply and demand side situation, market supply has tightened, while downstream demand is developing well, and the short-term corn market oversupply situation has been reversed.



      Corn traders are difficult to do businesskeK-,

      Corn traders are difficult to do business

      In previous years, after purchasing corn, Mr.


      "This year will not work, this kind of rhythm is gone.


      "Some time ago, the price of corn fell by about 10% in a month.
    We delivered the goods to the port.
    Within a few hours, the car had just walked to the gate to unload the goods, and we saw that (the price) dropped by several tens of yuan a ton.
    "Mr.
    Zhan reluctantly told Zhongzheng Jun, "The price of corn has skyrocketed again in the past two days.
    The newly harvested grain has not yet been delivered to the port, so a ton has risen by 100 yuan.
    "keK-,

      This round of sharp fluctuations in corn prices appeared after March this year.
    According to the monitoring information of Zhuochuang Information, taking a deep processing company in Shandong as an example, the company’s corn purchase price reached its recent highest level of 3,080 yuan/ton on March 2 and has since fallen, reaching a new low of 2,730 yuan/ton on April 2.
    Within the month, prices fell by 350 yuan, a drop of 11.
    36%.
    Since then, there has been a rebound.
    The purchase price on April 9 was 2880 yuan/ton, a cumulative increase of 150 yuan/ton in the past week, an increase of 5.
    49%.
    keK-,

      Hot money hoarding food intensifies shockskeK-,

      Hot money hoarding food intensifies shocks

      "From a historical point of view, the corn industry has a cyclical trajectory: one big market in 10 years and one small market in 3 years.
    " Mr.
    Zhan introduced, but this law has faded in recent years.
    In his view, apart from domestic supply and demand In addition to the impact of international food prices, the involvement of speculative capital in recent years has been the main reason.
    keK-,

      "These people in our food circle are familiar with each other.
    Since last year, some people we don't know suddenly appeared.
    Later, we learned that they used to do construction and real estate speculation.
    " Mr.
    Zhan told reporters, "Why did you choose? Some of them said that they were afraid of inflation after the return of real estate funds, and they did not dare to save money, so they chose to hoard grain.
    Among the grain, corn was expected to increase in price due to the cancellation of the temporary storage policy, so they followed this line of thinking.
    Come in.
    "keK-,

      "Last year, there were a lot of unfamiliar figures at the temporary reserve auction.
    These cross-industry companies did make some money.
    Moreover, some people have teams and strategies, and they have done a good job.
    The scale of funds can easily be several hundred million, and they ran away after earning money.
    "Mr.
    Zhan said, "These people have basically finished their shipments recently.
    "keK-,

      Supply and demand are good for corn priceskeK-,

    Supply and demand are good for corn prices

      From a fundamental point of view, Chen Qingqing, a corn analyst at Zhuochuang Information, told Zhongzheng Jun that the domestic corn price has bottomed out in stages recently.
    From the apparent point of view, the arrival of deep-processed corn in North China continues to be low, and the deep-processed corn in Northeast is in front of the door.
    The number of freight vehicles has decreased, the prices of individual purchases have rebounded, and the quotations of production areas have decreased.
    From the analysis of the root cause, the phased change in the relationship between supply and demand is the main reason for the change in corn prices.
    keK-,

      Looking ahead, he is not pessimistic about corn prices.
    He said that from the supply side, on the one hand, the pace of grass-roots grain sales has slowed down, and grass-roots grain surpluses are less.
    According to the monitoring of Zhuo Chuang Information, as of March 31, the progress of farmers' grain sales in Northeast China is 92%, which is faster than the same period last year.
    %.
    Among them, 95% of grain sales progress in Heilongjiang, 86% in Jilin, 93% in Liaoning, and 92% in Inner Mongolia.
    The progress of farmers' grain sales in North China is 88%, which is 16% faster than the same period last year.
    Among them, the progress of grain sales in Shandong is 89%, 87% in Hebei, 91% in Henan, and 85% in Shanxi.
    Especially in the Northeast region, the sales of land-based grains and small-scale retail surplus grains have been completed, the pace of stock market listings has been steady, the urgency of farmers' grain sales has slowed, and the price power has increased.
    keK-,

      On the other hand, in the face of the continuous decline of downstream purchase prices, the way for traders to pass costs to grassroots farmers has been cut off, and the supporting force of the construction cost of dry grain in the warehouse has begun to appear.
    keK-,

      From the perspective of demand, the demand for downstream corn increased slightly in March, and the overall rate was smaller than the market supply, but the long-term improvement expectation remained unchanged.
    In terms of deep processing, according to the monitoring of Zhuochuang Information, the operating rate of the deep processing industry in March increased compared with February; in terms of feed, the profitability of white feather broiler chickens nationwide was relatively good, and farmers were more motivated to make up for slaughter.
    According to research conducted by Zhuochuang Information, the live pig epidemic in March gradually came to an end.
    As the weather became warmer, the epidemic tended to ease overall.
    In March, the loss rate of pig stocks gradually declined, and the decline was more obvious.
    Although the epidemic occurred sporadically in some areas in April, it did not affect the pace of recovery of pig production capacity.
    In addition, spring is the peak season for replenishment.
    Therefore, the piglet market transactions are fair, and the overall pace of production of pig production is still moving forward.
    keK-,

      “,,,,4,4,。”。keK-,

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.