May 17, 2022
 

China Corn: Concerns over wheat harvest strengthen demand (week ended May 16, 2022)

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As supplies of corn remained tight while the upcoming wheat harvest remained uncertain, corn prices strengthened of late. There were reports that Chinese farmers were selling green wheat to feed producers who offered good prices, hence prompting the government to issue warnings. Moreover, farmers reported that the covid lockdown has delayed deliveries of fertilisers, which might affect the crop yield.

Corn prices averaged RMB2,868/tonne, increased RMB26/tonne or 0.91% compared with the previous week.

The market is closely monitoring the upcoming wheat harvest in China, which experienced the worst crop condition in history before winter due to floods and heavy rains last fall.

As wheat is usually used to substitute corn before October, worries over the wheat supplies will prompt feed producers to increase corn stockpiles. This will drive up prices amid tight corn availability.

Full version of the report is available at: https://spoutinfo.com/market-forecast-detail/31/32/265/4115       

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