It is understood that the price of corn in the northeastern production areas has continued to climb recently, and local deep-processing companies have repeatedly raised their purchase prices in the last two weeks. The weekly increase rate is about RMB 30/tonne to RMB 60/tonne, and part of traders' feed companies are following suit. "The price increase purchase has led to an overall rise in the prices of the northeastern corn market. Although the northeast corn market outlook has been widely recognized by the market, but this round of sudden rise and fall before and after the spring broadcast market must have its special city background and reasons, are based on the mastery of the situation for a brief analysis, for reference only.

First, the national reserve of corn in the south, the northeastern production area after the corn futures source tension is expected to rise significantly. In recent days, with the government’s macroeconomic regulation and control of the State Reserve's southward corn activity gradually starting, it is estimated that around 8 million tons of corn in Northeast China will accumulate before August, which means that the decline in corn supply in Northeast China has greatly exceeded the market’s previous expected. Stimulated by this news, the northeast deep-processing enterprises have exerted a tense mentality on the local corn supply in the latter period, and prompted them to adopt a substantial increase in the purchase price strategy to compete for market grain sources and replenish stocks, so as to avoid the price increase caused by the shortage of local corn supply in the later period. Its production cost has greatly increased.

Second, the demand for deep-processing enterprises continues unabated, and the state reserve storage plan is still being implemented. At present, the major products of northeastern corn deep processing, such as fuel ethanol, ordinary alcohol, and starch, are relatively well sold, and by-product corn oil is also sold smoothly. Although most processing companies have sufficient corn inventories, there is still a certain gap in the supply of raw materials in the later period. At the same time, the State Reserve Bank is still carrying out market-based acquisitions in the northeastern production areas, resulting in the emergence of two major players in the market. As a result, local corn prices have risen in a straight line, and deep-processing companies have made profits from their downstream products. The level of corn purchase prices is gradually approaching the State Reserve, and individual companies have surpassed the local buying prices.

Thirdly, the demand for aquaculture has gradually improved in some parts of the country recently, driving up the price of maize in Northeast China. Recently, the demand for livestock and poultry husbandry in some parts of the southern region has improved compared with the previous period. According to a feed mill in Nanchang, the feed sales in April rose by 30% to 50% from March, and the volume of shipments also decreased from the previous period. In particular, coastal port cities such as Nanning and Fuzhou have caused local corn prices to rise significantly, and the weekly rate of increase per ton can reach 30-60 yuan. At the same time, the aquaculture industry in Northeast China is gradually recovering, and the demand for corn in the local market is steadily increasing. Some of the farmers’ grain will be reserved for feed for their own use, which will lead to a tight supply of corn in some regions of Northeast China after spring sowing.

To sum up, due to the further tightening of corn supply in the later period, competitive purchases of deep-processing enterprises and the State Reserve, and gradual improvement in domestic aquaculture demand, the seasonal strength of corn prices in the northeastern producing areas is expected to continue. The basic reason for the continuous rise of corn prices in northeastern China since late April is that policy-based grain sources and shipments have relatively changed the supply pattern of grain resources in the local market in the later period. It is expected that with the advancement of “North Grain and Nanfang Transport”, deep processing enterprises in Northeast China will The purchase price of corn may continue to be raised, and at the same time, the improvement in domestic demand for aquaculture will also play a role in fueling the recent corn price.

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