Farmers hold dried corn in their hands.
Continental corn prices are still rising, while feed prices have already risen by 20%. Some industry sources say mainland meat prices will rise again, especially near the Yellow New Year, when demand is soaring.
The price of corn on the mainland has accelerated since 2021. According to the Daily Economic News, corn prices in Heilongjiang, Hebei and Fujian have been rising continuously in recent times, and local corn prices in Fujian have exceeded 3,000 yuan (RMB, same below) per ton, reaching up to 3,050 yuan per ton.
Heilongjiang, the main corn-producing region, is representative of its corn prices. 3 months ago, the purchase price of corn per ton in the main producing area of Qiqihar, Heilongjiang, was between 2,000 and 2,200 yuan, but now it is close to 2,600 yuan per ton, an increase of about 20%, and even close to 30% at the highest.
At present, the purchase price of corn in Hebei Province has reached 2800~3000 yuan/ton, and a person from a pig breeding enterprise in Nanping, Fujian Province said that the local corn price has risen to 3050 yuan/ton.
Manager Chen, head of the raw grain purchase department of a listed company in Heilongjiang deep processing grain, said: “After the new season of corn was listed in 2020, prices have continued to rise, only the size of the increase varies from week to week. Even in December, the period of temporary storage corn sales, the price did not fall, just flat.” And this year after the New Year’s Day rose faster, to now the rate of increase has reached 150 ~ 200 yuan / ton a week.
Manager Chen introduced: “If traders buy plus drying costs, storage costs and so on and then sold to the public, the price is even higher.”
Because corn has the “king of feed”, so corn prices have driven the midstream feed to follow the rise.
Great Northern Agricultural Group in Tianjin Science and Technology Park is responsible for the procurement director of North China Wei Fei said that the purchase price of corn before and after New Year’s Day or 2700 yuan / ton up and down, has now risen to about 3100 yuan.
Wei Fei also said that corn by-products, wheat by-products and other energy-based feeds have gone up more, and soybean meal has also increased in price. Soybean meal also rose from around New Year’s Day. “The low point before New Year’s Day in a little more than 3,000 yuan, less than 3,100 yuan / ton, and now 43 soybean meal (according to the different protein content divided into 43/46, etc.) factory price at about 4,150 yuan / ton, up more than 1,000.” And soybean meal is very short, logistics trucks to the oil mill side of a very long queue, and often can not wait out.
Wei Fei said, feed prices have been “up three or four waves” in the past two months. The company also had to change from the original price every two weeks, into the current one week adjustment.
Corn price increases have now been transmitted to the downstream farms, pig enterprises feed costs increased by at least 20%.
Feed ingredients are roughly divided into energy, protein and some other core additive classes. The energy class is representative of corn, soybean meal is a representative of the protein class.
Wei Fei thinks, corn than around New Year’s Day rose about 400 yuan, less than 20%; soybean meal than around New Year’s Day rose more than 1000 yuan, up 34%, a comprehensive calculation, pig enterprises feed costs increased by at least 20%. This has a greater impact on farms, relatively speaking, because broiler farming profits are low, feed price increases on their biggest impact.
Some market participants also said that near the yellow calendar New Year, the mainland demand for pork, chicken and other foodstuffs, feed price increases will certainly be transmitted to the consumer market, the New Year period, the people’s spending will certainly increase.
For the reason of soaring corn prices, Manager Chen believes that in 2015, the authorities stopped buying corn and started to promote de-stocking. Therefore to these recent years, the temporary storage of corn is in the process of reducing.
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