Although China restricts corn deep processing industry, policy does not come it effect in that corn consumption is still tight. Some restriction policies on the contrary promote demand for corn deep processing development.
Chinese government will keep restricting the development of corn deep-processing industry in the future. Therefore, related corn producers need to improve the competitiveness of their products by strengthening the development of encouraged products by the government and so on. For instance, seeing the remarkable profit that Meihua Holdings Group Co., Ltd. has obtained from minority amino acids in 2011, Fufeng Group Co., Ltd. plans to expand its production lines of the products in the future, as mentioned in its 2011 annual report.
We can not only talk about the price from micro supply and demand, but from macro perspective, capital flow, inflation and market psychology. We should not merely focus on corn yield, but the wheat and rice, which will affect each other.
VR of Wintone
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