According to data from the China Feed Industry Association, the total industrial feed production in China in 2022 was 302.234 million tons, an increase of 3.0% compared to the previous year; The total consumption of corn by major deep processing enterprises in China is 504000 tons, and the current operating rate of major deep processing (starch) enterprises in China is 46.98%.

The US corn market showed a slight fluctuation trend, and market concerns about the prospects of Black Sea grain exports have provided some support to the market. The planting of corn in the United States has been smooth, but the export performance is still poor, and China's consecutive cancellation of orders has weakened early support. At the same time, the expected value of Brazilian second season corn is relatively high, and Brazilian corn prices are more advantageous, leading to a squeeze on some US corn export markets and suppressing US stocks. At present, the US market mainly focuses on weather, export rhythm, and the situation in the Black Sea.

In terms of domestic supply, the spot price of corn futures continues to decline. Since May, the wheat market has ushered in a new round of price cuts, with high expectations for new wheat yield, driving traders to increase their enthusiasm for buying goods. The price difference between wheat and corn in some main production areas has turned negative, and the pressure on the export of old wheat has dragged down the spot price of corn. The amount of natural dry grain increased in Jilin region, the purchase price of corn in Beigang decreased continuously, and the supply of Viktualienmarkt was relaxed in stages. In terms of demand, breeding enterprises are still in a loss stage, and feed enterprises are trying their best to control the cost of raw material procurement and increase wheat procurement. The proportion of corn used in feed will decrease; In terms of deep processing, the May Day holiday failed to boost the efficiency of starch sales, and downstream enterprises showed a clear wait-and-see sentiment during the downward trend of raw material prices. Overall, the corn market continues its previous decline and the center of gravity of wheat prices has shifted, driving consecutive sessions of corn to follow suit. Demand side support is limited, and corn is expected to continue to bottom out, making it difficult for prices to perform strongly in the short term. In the medium to long term, the abundant corn production in South America and the increase in the global area of new season corn have dragged down the prices of far month contracts, and the overall corn fundamentals are weak.

 
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