334.77 million tons of state reserve corn to be auctioned this week

3.3477 million tons of state reserve corn to be auctioned this week China will auction 3.3477 million tons of state reserve corn this Thursday and Friday, 9 times the amount of last week, of which 2.484 million tons come from Heilongjiang. To stimulate domestic corn consumption demand, China has also raised subsidies for corn processing plants to 200 yuan/ton, which may help increase the transaction volume at this week's auction. By contrast, the auction held last month saw slow transactions because the prices set by the government were relatively high while domestic corn demand was weak.

Short-term tight supply of domestic oils and oilseeds Since last October, domestic imports of oils and oilseeds have declined markedly. According to customs statistics, from last October to March this year, soybean oil imports were 197,000 tons, down 69.18% from the same period of the previous year; palm oil imports were 2.348 million tons, down 26.9% from the previous year; rapeseed oil imports were 366,000 tons, down 32.24% year on year. Although soybean imports increased 4.2% to 34.29 million tons, total oil imports plus oil equivalent from oilseeds still fell 11.29%.

Domestic oils and oilseeds are gradually transitioning from the earlier oversupply to a basic balance between supply and demand, or even a tight supply. As oil imports decline, port stocks of soybean oil and palm oil have fallen to lows in recent months. As of April 30, domestic commercial soybean oil stocks were 624,700 tons, down 382,600 tons year on year; port palm oil stocks were 396,200 tons, far below 1.1316 million tons in the same period last year. At present, the operating rate of port oil mills is at a historically low level of 45%, and oil supply is tight.