Price of corn has been rising since the beginning of July.
The main trend is that it would keep rising in the future.
There are some reasons to support it:
1. International epidemic
Due to the global epidemic in 2020, at least 13 countries currently restrict food export plans, and the import volume of corn and corn substitutes has been severely affected. The decline in the import volume will support domestic corn prices.
2. Recovery of pig production capacity
In 2020, our country has introduced many breeding policies to support large-scale breeding. It is expected that in the third quarter from July to September, the demand for corn feed will usher in explosive growth, and the market price will be boosted again.
3. Decrease in market food sources
At present, the corn market in Northeast and North China has less than 10% of the grassroots grain source, and the demand exceeds the supply. The market is at a time when the market is not available. In order to rush to buy grain sources, the port, deep processing, and feed companies are bound to increase prices to promote harvest.
On Thursday, US corn spot prices rose sharply.
The weekly export sales report of the U.S. Department of Agriculture shows that for the week ending August 6, 2020, the U.S. net sales of corn for 2019/20 were 377,000 tons, significantly higher than last week and 18% higher than the four-week average.
Corn is raw material for many product like feed additives.dextrose.ethanol.citirc acid.monosodium glutamate.xylitol.etc. It is sure that price rise of corn would affect these items