Domestic spot corn market has remained stable on the whole this week (from November 3 to 7), with the continuous input of policy corn and the low level of trading volume. The new season corn from Heilongjiang Province and Jilin Province continued to come into the market and the market prices have remained stable. The prices in North China market have been stable and some enterprises have purchased at raised prices. It is said that the transportation subsidy might be cancelled and the corn futures market of Dalian Commodity Exchange (DCE) has been relatively calm.
The Auction Fair of National Temporary Storage Corn (Including Cross-province Warehouse Shifting) was completed on November 5. The fair planned to sell 2,998,925 tons of corn and the actual trading volume is 1,455 tons, presenting the trading rate of 0.05%. Specifically, the planned selling amount of 2011 corn was 27,652 tons, which has all been passed; that of 2012 corn was 1,559,080 tons while the actual trading amount was 1,455 tons, presenting the trading rate of 0.09% and the trading price of RMB 2,488/ton; and that of 2013 corn was 1,412,193 tons, which has all been passed.
New grain from northeastern areas has come into the market with increasing amount, with the most obvious increase of corn from Heilongjiang and Jilin, and the prices have maintained stable. As the grain selling has been relieved, most farmers have become active in selling grain. But, some have remained reluctant to sell mainly due to the psychological gap caused by the relatively high prices in the early period and the recent continuously falling prices.
The grain supply is sufficient in North China, but the downward prices have led to the relatively flat basic buying and selling. With the gradual stabilizing of prices and the reducing of the moisture content of new season corn, some enterprises have started to purchase at slightly higher prices. If the hearsay transportation subsidy is cancelled, the southern selling areas will be greatly affected, thus directly increasing the entering cost of northeastern grain. As a result, the North China grain will possess obvious position advantage and it is worth expecting the prices of the North China corn prices in the later period.
Enterprises in southern selling areas have actively made purchase mainly due to the rumored subsidy. However, as the arrival grain supply is sufficient, no panic purchase has occurred. Currently, enterprises are still relaxed toward purchasing and mainly focus on setting up safe storage and buying preferred grain.
The arrival amount of new corn at northern ports has been slightly increased and slight price fluctuation has been seen in the market. The prices in southern port market have gone up slightly and the picking-up speed has been accelerated. At present, the connection between southern and northern port prices are relatively close and relevant follow-up policies will have significant influence on the market in the future.
The prices of live pig have continued to maintain weak and the amount of livestock on hand has remained at a low level. The peak consuming season has come and the key is the amount of increased demand. No sign of explosive growth has been seen in the market. Affected by the bird flu, the prices of the poultry and egg markets have greatly dropped in the short term. Winter and spring are the high epidemic season of bird flu for successive years but the poultry and egg markets have both got out of the weak operation situation. Thought there is no need to become excessive panic, participants should maintain cautious and try to avoid huge losses.