October 2, 2020
China Corn: Robust demand lift prices (week ended Sep 25, 2020)
In view of soaring corn prices amid tight availability, deep processors eagerly stocked inventories. Hence, even as farmers were keen to release newly harvested corn, which were difficult to preserve due to the high moisture content, prices rose significantly over the week.
Corn prices averaged RMB2,347/tonne, surging RMB25/tonne or 1.1% compared with the previous week.
Although the government claims that 2020 will be a bountiful year, strong grains prices prove that market participants are wary of the forecasts. Corn prices are likely to soften due to the early harvest in the central region and the state reserves auction. However, corn market will stay firm in the longer term due to the anticipation of lower production this year.
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