China's corn yield record has been broken for the seventh time 11-05-2020

According to the official website of the Institute of Crop Sciences of the Chinese Academy of Agricultural Sciences, experts in Xinjiang province, Qitai county Carried out an estimation of actual crop yield for the crowd growing high yield corn crop planted by the Science Research Team of the Institute of Crop Sciences of the Chinese Academy of Agricultural Sciences. The research team estimated that the crop yield may reach as high as 25,000 kg per hectare, which would shatter the current record of 22,750 kg per hectare, with an increased corn yield of 2,250 kg per hectare of farmland. This is the seventh time this research group has increased the record for corn yield per hectare in China.

Demanding buyers and reluctant sellers have led to bullish October grain market in China

China’s food prices have experienced steady movement since October. Due to the increasing demand of corn in the market, as well as farmers’ reluctance to sell off their crops, the price of corn has seen a surge since October. Currently, the average price of corn has increased to RMB 2,600 per ton, compared to the beginning of 2020 when the corn price was RMB 1,900 per ton, with an increase of nearly RMB 600 for each ton of corn.

With the upward surge in the price of corn, the prices of wheat and rice have also risen steadily. The current market price of wheat has reached an average range of RMB 2.50 to RMB 2.56 per kilogram, and the price can be expected to break RMB 2.6 per kilogram. Similarly, the current market price of rice has reached an average range of RMB 2.6 to RMB 2.86 per kilogram, a YoY increase of RMB 0.2 per kilogram. In particular, the price of high quality japonica rice has experienced a marked increase, with the current market price of long grain japonica rice averaging between RMB 1.9 and RMB 2.3 per kilogram.

Analysts predict grain price correction in November

Despite the recent sharp increases in the prices of grain, there is evidence that these prices may be reaching their peal. For instance, while corn has seen a recent spike in price in the northeastern region of China, the price currently appears to be undergoing a correction. Additionally, corn prices in Shandong have shown signs of decline. As an example, the price of corn quoted by Taian Lurun Co., Ltd. of Yingnan county in Shandong has recently decreased by RMB 20 per ton. Industry analysts predict that the current bullish price increases may be reaching their limit, and a future price decline is possible.

Analysts predict that during the month of November, the chance of continued grain price increases is relatively small, and the most likely price changes will be corrections to the recent price surges. However, from a long-term perspective, as the corn supply gap continues to grow larger, there is certainly room for the prices of corn and other grains to continue to increase in the future.

For more information on China’s corn market, please check our Corn Products China News.

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