Maize prices are expected to remain generally stable this year

On April 17, Tang Ke, Director of the Department of Market and Informatization of the Ministry of Electricity and Agriculture of China, pointed out that although the current market buying and selling has picked up, the basic aspects of corn consumption still need to be observed. On the one hand, the profit of corn deep processing declined. On the other hand, the impact of African swine fever continues to show. Considering that the state's temporary maize stocks have dropped dramatically and the pressure of market supply has eased, it is expected that the price of maize will remain stable in the later period.

The Ministry of Agriculture and Rural Affairs held a regular press conference on the morning of the 17th, briefing the operation situation of the major agricultural products market in the first quarter of this year, interpreting the current hot issues in the agricultural products market, and answering questions from reporters. At the meeting, a reporter asked: Last year, the sales of New Maize in Northeast China were relatively slow, and the surplus grain in the hands of farmers was relatively large. Is the buying and selling situation of corn improving now? What is the future trend of corn market?

Tangke introduced that the harvest date of new maize was delayed last year, the enthusiasm of enterprises to enter the market was not high, and the grain sales progress of farmers in Northeast China was obviously slow. At the end of December 2018, the sales progress of Maize by farmers in Northeast China was about 37%, which was 20 percentage points lower than that of the previous year. After the Spring Festival, with the gradual warming of the weather and the need of farmers to cash in, the purchase and sale of Maize in Northeast China tended to be active. In mid-March, after the state launched a one-time reserve purchase, the price of maize stabilized and warmed up. At the end of March, the purchase price of third-class Maize in Northeast China ranged from 1600 to 1700 yuan per ton. At present, corn in North China is more than 200 yuan higher than that in Northeast China, which drives northeast corn to flow to North China. Under the influence of various factors, the pressure of "land-based grain" sales in some parts of Northeast China, which are more concerned by all parties, has been alleviated. At the end of March 2019, the sales progress of Maize by farmers in Northeast China was 85%, which was significantly higher than the previous period.

Tangke also indicated that although the current market buying and selling has warmed up, the fundamentals of corn consumption still need to be observed. On the one hand, the profit of corn deep processing declined, especially the alcohol enterprises in North China lost money for three consecutive months, so it is difficult for industrial consumption to increase substantially in the short term. On the other hand, the impact of African swine fever continues to show. In February, the stocks of live pigs and**fertile sows decreased significantly from the same period last year, which was not conducive to the consumption of corn feed in the second half of the year. The impact of African swine fever on feed is still considerable. There is less demand for corn and wheat bran in the market, and the price has also come down. < p > < p > Tangke said that considering the sharp decline of the national corn stocks and the easing of market supply pressure, corn prices are expected to remain generally stable in the latter part of the year.