New grain is about to be launched in large quantities, and the price of corn in Henan province has fallen back to the 0.9 yuan/jin mark
On September 24th, a farmer who came to our store to buy wheat seeds said that the price of newly produced corn has been declining rapidly recently. For example, on September 23rd, the purchase price of corn was 0.9 yuan/jin, but on September 24th it was only 0.85 yuan/jin. The reason for this is that some of the newly produced corn has quality deviations, and the moisture content of the newly harvested corn is also high. "A person in charge of the agricultural inputs management department in Queshan County, Henan Province told the Futures Daily reporter that due to the rapid decline in prices of wheat, corn, soybeans and other grains, it is very difficult to do business at present, and prices of wheat seeds, fertilizers and other products have all shown a downward trend. However, some farmers still indicate that in the new planting season, it is highly likely to use self kept seeds for sowing, and the input of agricultural materials such as fertilizers will be reduced appropriately.
Yang Huasong, General Manager of Henan Chengyi Agricultural Development Co., Ltd., told reporters that currently, the new season corn in various parts of Henan is entering the peak harvest period, and the market supply is constantly increasing, with market prices being suppressed. At present, the purchase price of new season normal quality corn in Zhoukou City, Zhumadian City, Pingdingshan City and their surrounding areas of Henan Province is 0.92~0.95 yuan/jin, while the quality deviation is within 0.90 yuan/jin. The market situation is not very optimistic.
The new season corn in some areas of Hebei has already begun to be harvested. The current purchase price for wet corn cob vendors is around 0.45 yuan/jin, while the market sales price for aged corn is around 1.03 yuan/jin, "said Zheng Yinkai, a grain trader in Shijiazhuang, Hebei. Due to the upcoming large-scale listing of new grain, domestic corn prices have been relatively low recently, and the low opening price of Henan's new season corn is a normal market phenomenon. It is expected that this market situation will continue for some time.
Qi Kai, a grain trader in Huaxian, Henan, said that from the inventory of Chen corn, the market stock is not too much, but the overall decline in the quality of new season corn, especially in Henan, has made it difficult for market prices to perform well. It is reported that due to drought weather in many areas of Henan during the corn seedling stage, the growth and development period of corn has been delayed. Subsequently, during the corn grain stage, there was more rainfall in many areas of Henan, and some corn had mold growth.
However, from a national perspective, it is basically certain that there will be a bumper harvest of autumn crops such as corn in China this year. Lv Xiutao, Deputy Director of the Planting Management Department of the Ministry of Agriculture and Rural Affairs, recently stated that since the autumn grain planting this year, the weather conditions have been relatively favorable, with sufficient heat and precipitation. The overall growth of autumn grain crops such as corn, soybeans, and mid to late rice is normal and preferred, and there is hope for another bumper harvest of autumn grain in the country.
A corn processor in Jining City, Shandong Province, stated that with the large-scale listing of newly produced corn, there have been significant changes in the procurement strategies of downstream corn industry enterprises. For example, deep processing and feed processing enterprises have been more proactive in purchasing high moisture new grains, and their procurement standards have been greatly relaxed. At the same time, the prices offered have begun to decrease. For example, the entry price of "alcohol grains" in Shandong, Hebei, Henan and other places is generally within 0.9 yuan/jin.
Yang Huasong said that although the current domestic price of new season corn is relatively low, we cannot be too pessimistic about the future expectations. If there is a significant decline in the quantity of imported corn and substitutes in China in the future, coupled with the reduction in production and quality of domestically produced corn in some regions this year, the price of high-quality corn in the later stage is still worth looking forward to.