China's Corn Market Under Pressure from Increased Supply

The corn market in China is facing downward pressure due to increased effective market supply. According to SunSirs, domestic corn prices are weakening as new crops enter the market. In North China, large quantities of new crop arrivals have put pressure on prices, with listed purchase prices being continuously reduced.

New crops in Northeast China have also started harvesting, with low opening prices and significant discounts for moisture-laden grains. The quotes at northern ports followed the downward trend in producing areas. The main futures contract fluctuated and fell, as the market trades on the expectation of a bumper new crop harvest.

The supply side is dominated by increased effective supply, driven by multiple grain sources being released concurrently. Carried-over stocks from the previous crop are relatively high, putting pressure on grain storage under high temperatures. Grain-holding merchants have accelerated their sales to realize profits, adding to old grain supply in the market.