January 18, 2021

China Corn: Strong rally amid fears of shortages (week ended Jan 15, 2021)

Corn prices rallied ferociously as sales boomed amid fears of a severe supply crunch with China's production sharply below expectations, import costs surging due to soaring freight charges and the coronavirus pandemic worsening in the country. Feed producers were afraid that, like last year, the transportation of raw ingredients would stall should the country enter a new round of lockdown.

Corn prices averaged RMB2,843/tonne, surged RMB151/tonne or 5.6% compared with the previous week.

Pre-Chinese New Year stockpiling of corn will support prices to surge further. Unless China government has more reserves stocks to release, corn prices are set to soar toward RMB3,000/tonne.

Full version of the report is available at:https://spoutinfo.com/market-forecast-detail/31/32/265/2807
 

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