Increased production of corn in the country instead of raising prices

With the increase in production compared to last year, the national corn price has risen sharply this year. Behind this, in addition to demand promotion, the existence of a large number of hoarding capital is also an important reason. In the corn purchase market, there are similar trading companies with backgrounds of central enterprises.

According to 21st Century Business Herald, corn prices have risen sharply this year as production has grown compared to last year. Behind this, in addition to demand promotion, the existence of a large number of hoarding capital is also an important reason. In the corn purchase market, there are similar trading companies with backgrounds of central enterprises.

According to the forecast of national grain agencies, the national corn production in 2011 will reach more than 182.5 million tons, compared with 177.3 million tons in 2010.

According to 21st Century Business Herald News, a number of procurement managers of corn deep-processing enterprises stated that the sales price of corn in the south sales area was at 1.25 yuan per catty this year, and that of Shandong was increased to 1.35 yuan, which was about the same as the purchase price of 0.95 yuan/kg at the beginning of opening. In comparison, the price and increase rate are the procurement managers of many corn deep processing enterprises with the highest historical level. This year, the transaction price of corn in the southern sales area was 1.25 yuan per catty, and that of Shandong was increased to 1.35 yuan, which was about 0.95 yuan/kg from the beginning of the scale. Compared with the purchase price, the price and increase rate are the highest levels in history.

In this regard, a Shandong corn deep processing enterprise Zhang Xing purchasing manager said that the 2011 national corn demand and supply gap is only about 2 million tons, will not appear to have a high price of 1.35 yuan / kg. The key reason lies in the large number of capital accumulation in the trading sector, the control of corn in the hands of traders, and high corn prices.

According to the article, there are currently dozens of companies stationed in the main corn sales area in Shandong, including the Xiamen Jianfa Group, which focuses on real estate and tourism development. There are also similar trading companies with a background of central enterprises.

The above-mentioned purchase manager of the last name stated that the reason why the central and private capitals dared to enter the corn trade was the large demand for gambling. There was insufficient stock of corn in the national reserve pool and there was no corn on the market. He also stated that social capital and even central enterprises have entered the corn trade, resulting from the fact that four central grain reserve companies such as COFCO, China National Grain Storage, China Textile Group, and Hualiang Logistics were allowed to engage in corn trade operations in 2008.