Based on futures prices, the hog-corn price ratio for May delivery on the Dalian Commodity Exchange has now moved slightly higher to 5.7:1.
Hog futures remain in a carry with the March contract trading at just 14.79 yuan per KG while the January 2024 contract is at 19.00 yuan per KG.
The corn market is slightly inverted with March at 2821 yuan per ton, September at 2810 yuan per ton, and January 2024 at 2734 yuan per ton.
On the corn processing side, starch margins remain very weak. Front-month corn starch futures traded near parity with corn futures at the end of 2022. On Tuesday, the lesser-traded March contracts saw corn starch only 12 yuan per ton higher than corn.
Starch producers have faced very negative margins in the past several months which will weigh on industrial demand for corn.