December 13, 2016


China Corn Weekly: Market under pressure on rising supplies (week ended Dec 9, 2016)


An eFeedLink Exclusive

 


Price summary


Prices were mostly lower.

 

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

Region

City/ Port

Price type

Price as of Dec 2 (RMB/tonne)

Price as of Dec 9 (RMB/tonne)

Price change (RMB/tonne)

Heilongjiang

Haerbin

Ex-warehouse

1,500

1,500

0

Jilin

Changchun

Ex-warehouse

1,620

1,614

-6

Liaoning

Shenyang

Ex-warehouse

1,620

1,620

0

Inner Mongolia

Tongliao

Ex-warehouse

1,630

1,624

-6

Shandong

Dezhou

Ex-warehouse

1,700

1,700

0

Shandong

Weifang

Ex-warehouse

1,720

1,702

-18

Hebei

Shijiazhuang

Ex-warehouse

1,652

1,650

-2

Henan

Zhengzhou

Ex-warehouse

1,760

1,760

0

Jiangsu

Xuzhou

Ex-warehouse

1,800

1,800

0

Shaanxi

Xi'an

Ex-warehouse

1,660

1,660

0

Jiangsu

Lianyungang

Rail Station

1,800

1,800

0

Zhejiang

Hangzhou

Rail Station

1,950

1,946

-4

Shanghai

-

Rail Station

1,950

1,946

-4

Sichuan

Chengdu

Rail Station

2,028

1,992

-36

Liaoning

Dalian

FOB

1,734

1,710

-24

Liaoning

Jinzhou

FOB

1,734

1,710

-24

Guangdong

Shekou Port

CIF

1,942

1,940

-2

Fujian

Fuzhou

CIF

1,966

1,950

-16

All prices are representative and are for reference only.
RMB1=US$0.1446 (Dec 12)

                           
                           

Market analysis


As the availability of corn increased with more autumn crops ready for sale, prices were under pressure in several regions. Additionally, deliveries from the production region improved, hence easing the supply tightness in the consumption region.


Nonetheless, feed millers expanded inventories prudently while the livestock feed demand improved. Overall, corn prices dipped 0.45% over the week on average.

 

Market forecast

Even though corn farmers may hold back releases, the upward scope of the corn market will be limited with supplies plentiful. Prices are seen stable to lower in the coming period despite higher feed demand with the livestock sectors preparing for January's pre-Chinese New Year market.
 
 
 

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