July 18, 2016

China Corn Weekly: Increased supply, slack demand weigh on prices (week endedJul 15, 2016)
 
An eFeedLink Exclusive
 
 
Price summary
 
Prices were stable to lower.
 

Weekly transacted prices of second-grade corn in China (Moisture content 14%)

Region

City/ Port

Price type

Price as of Jul 8 (RMB/tonne)

Price as of Jul 15 (RMB/tonne)

Price change (RMB/tonne)

Heilongjiang

Haerbin

Ex-warehouse

1,800

1,800

0

Jilin

Changchun

Ex-warehouse

1,860

1,860

0

Liaoning

Shenyang

Ex-warehouse

1,860

1,860

0

Inner Mongolia

Tongliao

Ex-warehouse

1,880

1,880

0

Shandong

Dezhou

Ex-warehouse

1,860

1,846

-14

Shandong

Weifang

Ex-warehouse

1,880

1,868

-12

Hebei

Shijiazhuang

Ex-warehouse

1,842

1,822

-20

Henan

Zhengzhou

Ex-warehouse

1,820

1,808

-12

Jiangsu

Xuzhou

Ex-warehouse

1,842

1,850

8

Shaanxi

Xi'an

Ex-warehouse

1,720

1,760

40

Jiangsu

Lianyungang

Rail Station

1,842

1,850

8

Zhejiang

Hangzhou

Rail Station

2,000

1,992

-8

Shanghai

-

Rail Station

2,000

1,992

-8

Sichuan

Chengdu

Rail Station

2,120

2,116

-4

Liaoning

Dalian

FOB

1,920

1,920

0

Liaoning

Jinzhou

FOB

1,920

1,920

0

Guangdong

Shekou Port

CIF

2,020

2,014

-6

Fujian

Fuzhou

CIF

2,000

2,000

0

All prices are representative and are for reference only.
RMB1=US$0.1494 (Jul 18)

 
 
Market analysis
 
More corn was released from the state reserves of late, holding prices down amid increased supplies. Meanwhile, feed millers held back purchases while prices of livestock products stayed weak.
 
However, as the quantity of high quality corn continued to shrink, price falls were limited, falling a nominal 0.08% on average.
 
 
Market forecast
 
Prices of corn are expected to stay soft as demand is weak while supplies from the government auction remains stable.
 
Towards mid-August, when the demand for animal feed strengthens due to the approaching of the Mid-Autumn festival, prices of corn are projected to move higher.
 

 


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