In the fourth quarter, my country's corn market set off a "grain grabbing tide". Prices skyrocketed and reached new heights in recent years. The skyrocketing corn is like a butterfly stirring its wings, triggering a series of chain reactions. Among them, corn starch is the upstream raw material of sorbitol, and sorbitol is the upstream raw material of vitamin C. Although there are more than a dozen VC manufacturers, and they have added 30,000 tons of new Hecheng capacity this year, they still cannot stop domestic VCs. The rising price momentum and the shrinking of the supply of raw materials restrained the operating rate. The second outbreak of foreign epidemics has caused a sharp increase in the export of food-grade VC. The output of feed-grade VC is low. About 70% of the global output, domestic vitamin C supply is tight, domestic and export quotations in the fourth quarter have risen successively, and the current domestic VC raw powder quotation has reached 40-42 yuan/kg, running at a high level.

Domestic corn prices rise to historical highs

Since November, the weather in the north has turned cold, and the traffic in the Northeast and North China production areas is not smooth due to rain and snow. Downstream companies have rushed to purchase grain to build stocks. The market price of corn has risen to a new high in recent years. Entering December, the pressure on farmers to repay loans has increased, imported grains have arrived in Hong Kong, China Grain Reserves’ rotation purchases have been delayed, and policy controls have restrained grain prices from continuing to rise. The supply of corn tends to improve, and the corn market in December may undergo a periodical correction. The corn market fluctuated at a high level due to the expected production cuts and low grain reserves.

Vitamin C export volume will increase year-on-year in 2020

In winter, new coronaviruses and influenza viruses are more likely to spread. The number of confirmed cases in the United States, the European Union, Russia and other places has exploded. Among them, the number of confirmed cases in the United States has exceeded 10 million. Vitamin C has the effect of improving immunity and increasing overseas demand. Affected by the epidemic, my country’s vitamin C export volume has increased significantly this year. In October 2020, my country’s VC export volume was 16,600 tons, an increase of 66.8% year-on-year and a month-on-month increase of 6%. From January to October 2020, my country’s VC export volume was 169,700 tons, year-on-year. An increase of 29.2%. From January to October 2020, my country’s vitamin C exports totaled US$612 million, a year-on-year increase of 23.7%

Domestic feed production increased year-on-year

The growth of domestic feed output is conducive to the demand for raw materials. According to the statistics of the Feed Industry Association, my country's total feed output in October 2020 was 23.82 million tons, a decrease of 2.4% from the previous month and an increase of 20.9% from the same period last year. Among them, pig feed output in October was 9.34 million tons, an increase of 8.6% month-on-month and a year-on-year increase of 64.3%, which was a year-on-year increase for five consecutive months. Statistics from the Ministry of Agriculture show that the stock of reproductive sows and pigs across the country has grown rapidly. In October, the stock of reproductive sows was 39.5 million, an increase for 13 consecutive months and 32% over the same period last year. The stock of live pigs has increased for 9 consecutive months.