Maize market price polarization

Zhao Xunzhang, general manager of Shandong Linyi Shuangfeng Grain & Oil Wholesale Co., Ltd. stated that before the Spring Festival, the purchase price of local common wheat was as high as 2,600 yuan/ton, while the purchase price of corn at that time was only around 2,300 yuan/ton. Many farmers believe that post-holiday corn prices will definitely rise. Therefore, they were not sold in time. Some traders also stocked large amounts of corn. However, after the holiday, not only the price of wheat declined, but the corn market was also sluggish.

“Also expecting to sell a good price after the spring, I didn’t expect the price paid by a small trader to be a piece of zero. I would also like to sell a piece of Mao’s three before the Spring Festival.” said Yang Xinwei, a villager of Dongshizhuang in Yanjin County, Xinxiang County, Henan Province. Seeing the skyrocketing wheat prices and hoping that corn can sell highs, it is not rushing to sell. After the spring began, with the temperature rising, the corn with higher moisture content was difficult to save, and farmers had to sell in large quantities, but they encountered problems such as small acquisitions by small vendors and unsatisfactory purchase prices.

Learned from the market, at present, farmers in Henan, Hebei, Shandong and other places are actively marketing corn, in which the purchase price in Shandong is relatively high, and the price of small traders directly acquired from farmers is 2240 yuan/ton. Judging from the above three areas of corn flow, corn in the eastern and southern parts of Henan mainly flows to places such as Jiangsu, Zhejiang, and Sichuan, and most of Henan and Hebei provinces of Hebei flow to the Shandong region. It is worth noting that the corn produced in the northeast is gradually going south and south. Due to certain advantages in prices, it has already affected the prices of corn in the eastern and central markets to some extent.

“The purchase price of corn in small grain stores is now 2240-2260 yuan/ton, the purchase prices of large-scale corn deep-processing companies like Shandongwang Group are at 2,330 yuan/ton, and the prices of corn from northeast China to Shandong are at 2,350 yuan/ton. Ton, the quotes are not high.” Zhao Xun Zhang said that, in addition, due to the continuing downturn in corn downstream demand, corn deep processing companies and companies are not optimistic about the market outlook. At present, the sales of corn deep-processing products are sluggish, and prices continue to decline, resulting in a generally low operating rate of deep processing enterprises. At the same time, the prices of domestic pigs and eggs have also begun to decline recently. The purchase price of live pigs has dropped from RMB 8-9/kg before the Spring Festival to RMB 5-6/kg, and the price of eggs has dropped from RMB 4-5/kg to RMB 3.7/ As a result, the demand for corn for feeding has been greatly reduced, which has limited its price increase to some extent.

High-quality corn is still tight, however, according to Zhang Zhixian, director of research and development of China Grains Network Information, the current market is mainly lower quality corn prices, which are relatively large, while the performance of high-quality corn prices is slightly biased compared to previous years. Strong. It is understood that after the weather has warmed, most farmers have first dealt with high-moisture corn. This part of the corn has relatively poor quality. The demanding companies are also not willing to purchase. The prices have been declining and the overall price of the corn market has dragged down. weak. For most high-quality corn, farmers are reluctant to sell them. They expect that good grain can sell at a good price. Demand companies are also concerned about insufficient supply of high-quality corn.

Zhang Zhixian believes that some end-demand companies have recently raised the high-quality corn purchase price slightly, indicating that the price of corn will begin to bottom out, and the country’s increase in the temporary purchase of corn reserves in northeastern production regions will also support the stabilization of market prices. In the later period, the high quality corn in poor quality corn, especially in the northeast region, is still to be digested. The pressure on the market will continue for a period of time, but the strong price of high quality corn will have a pull-up effect on the domestic corn market price, which will help The overall domestic corn price stabilized. In addition, in the case of a decline in the proportion of high-quality corn in the northeastern production areas, the phenomenon of higher quality and better prices in the corn market will become more prominent. Demand enterprises should increase their efforts to purchase quality corn.