China’s corn prices hit two-month high as rain damage sparks supply concerns
Corn prices in China hit a two-month high as heavy rains damaged northern crops, tightening supply. Strong demand from feed mills and pig farmers boosted buying of fresh grain from the northeast. Farmers are holding back stocks expecting higher prices, while rail delays are slowing shipments south, further supporting the market.
Corn prices in China climbed to their highest level in more than two months as buyers rushed to secure high-quality supplies following heavy rains that damaged part of the crop. Strong demand from feed producers and livestock farms has driven a renewed rise in domestic prices.
Futures in Dalian gained more than 1%, reaching the highest level since September. According to Guolian Futures, feed mills and pig farmers are seeking newly harvested grain from the northeastern provinces — China’s top-producing region — after excessive rainfall in the northern areas harmed crops.
Corn is one of China’s three most important crops, and authorities previously forecast a record harvest this season. However, recent extreme weather has introduced uncertainty. Severe rains in northern provinces, which account for at least 30% of total output, have disrupted harvesting operations.
Analysts note that farmers may be slow to sell, anticipating further price increases. Additional upward pressure has come from rail transport delays, which have hindered shipments of corn from northern production zones to consumer regions in the south, Guangda Futures reported.
At the close of trading, corn futures on the Dalian Commodity Exchange settled at 2,220 yuan ($312) per ton, reinforcing the upward trend in the market.
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Source : Ukr Agro Consult
