November 21, 2016
   
China Corn Weekly: Tightened availability underpins prices (week ended Nov 18, 2016)
 
An eFeedLink Exclusive
 
 
Price summary
 
Prices moved higher.
 

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

Region

City/ Port

Price type

Price as of Nov 11 (RMB/tonne)

Price as of Nov 18 (RMB/tonne)

Price change (RMB/tonne)

Heilongjiang

Haerbin

Ex-warehouse

1,518

1,510

-8

Jilin

Changchun

Ex-warehouse

1,642

1,630

-12

Liaoning

Shenyang

Ex-warehouse

1,632

1,620

-12

Inner Mongolia

Tongliao

Ex-warehouse

1,642

1,630

-12

Shandong

Dezhou

Ex-warehouse

1,682

1,692

10

Shandong

Weifang

Ex-warehouse

1,702

1,712

10

Hebei

Shijiazhuang

Ex-warehouse

1,652

1,660

8

Henan

Zhengzhou

Ex-warehouse

1,750

1,750

0

Jiangsu

Xuzhou

Ex-warehouse

1,680

1,692

12

Shaanxi

Xi'an

Ex-warehouse

1,636

1,652

16

Jiangsu

Lianyungang

Rail Station

1,680

1,690

10

Zhejiang

Hangzhou

Rail Station

1,908

1,924

16

Shanghai

-

Rail Station

1,908

1,924

16

Sichuan

Chengdu

Rail Station

2,008

2,020

12

Liaoning

Dalian

FOB

1,730

1,738

8

Liaoning

Jinzhou

FOB

1,730

1,738

8

Guangdong

Shekou Port

CIF

1,916

1,950

34

Fujian

Fuzhou

CIF

1,944

1,968

24

All prices are representative and are for reference only.
RMB1=US$0.1451 (Nov 21)


 
Market analysis
 
Shortages of corn in the consumption regions strengthened prices in most regions, lifting the average price by 0.45%.
 
As the stormy weather in the north hampered deliveries while farmers withheld releases with prices below expectations, supplies tightened in many regions. In the south, port inventories fell below 150,000 tonnes as shipments were delayed.
 

Market forecast
 
Corn market should remain firm in the near term due to tight availability. Moreover, freight charges have increased of late, prompting traders to uphold prices to sustain profit margins.
 
However, with the autumn harvests ready for sale soon, increased supplies will put a lid on the prices.
 

 


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