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.