12.
11.21
09:11

High prices for energy and logistics make grain drying in China more expensive

Despite the advancing harvest, corn prices in China have soared to multi-month highs after wet weather slowed the harvest. Very high prices for energy and logistics make grain drying more expensive, said analysts and traders.
The futures for the new corn crop on the Dalian Commodity Exchange rose almost 9% last month to their highest level since June, while the main cash markets in the east and south, the world's second largest corn consumers, have risen sharply in recent days are.
"Rain and snow delayed sales of new crops in Liaoning Province and Northwest and Northern regions, while logistics in Liaoning ports were suspended due to bad weather," said Meng Jinhui, senior analyst at Shengda Futures.
Liaoning produces 7% of Chinese maize. Its ports distribute its grain from other northeastern provinces, including Heilongjiang, the largest producing province.
“Farmers have a habit of drying grain in the fields and, when the weather is good, selling it to traders immediately after the harvest.But the rain and snow have hampered that habit, ”said Li Hongchao, an analyst at Myagric.com.
"Once they harvest and store the grain, they hold off marketing and wait for prices to go up," Li said.
In north and northeast China, according to a survey by Myagric.com, an average of around 12% of the corn harvest has been sold to the market so far, compared with 14% at the same time last year.
Corn prices are also being propped up by the rising cost of harvesting and drying the new crop, the country's Department of Agriculture said in its monthly crop report this week.
China's grain drying towers are mainly powered by coal. Some of the plants have been closed in recent weeks due to high coal prices and to comply with government orders to reduce energy consumption.
Higher energy prices also increased transportation costs.
"The trains and buses were all mobilized to transport mainly coal. Diesel supplies are so scarce in China that bus traffic has been paralyzed in some places," said a grain trader for an international trading company.
Wheat, a substitute for maize in the feed ration, has also risen due to strong demand from milling and livestock industries.
The sowing of the new winter wheat crop was delayed in key growing regions due to constant rainfall, which fueled concerns about the production of the staple food in the world's most populous country.
Spot prices for wheat in Shandong Province have risen 10% since early September.

Source
Hansa Terminhandel GmbH
Rückrufservice
Please describe your request so that we can prepare for the callback.
Yes, I have read the Privacy Policy note and I consent that the data provided by me, including the contact data, for the processing of the inquiry and in case of questions are electronically collected and stored. My data will only be used strictly for my request and will not be passed without my consent. This consent can be revoked any time with effect for the future.'
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Help?

Do you have questions about ZMP Live? Our team will be happy to help you. Please feel free to send us a message:

Our privacy policy applies

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Register now

Jetzt registrieren und ZMP Live+ 14 Tage kostenlos testen!
  • Dauerhaft kostenfrei
  • Keine Zahlungsinformationen erforderlich