China's Corn Market Sees Divergent Price Trends Amid New Crop Approach

The domestic corn market in China is currently characterized by 'policy-driven price floors' and 'weather-fueled volatility', according to recent data from SunSirs. As the new crop harvest approaches, old crop stocks are still being worked through, which has led to a divergence in futures and spot prices.

In the week of August 15-21, domestic corn futures prices rose, while spot prices in major producing regions fell due to the arrival of early-maturing new-season corn. The national average price saw a slight decline, down 2 RMB/tonne from the previous week.

Feed mills and deep-processing enterprises remain unenthusiastic buyers, with demand lagging and significant price surges unlikely. Downstream procurement data indicates that feed enterprises are actively destocking and limiting purchases due to pessimistic expectations.