Industry viewpoint: market-oriented pricing of new corn tends to be clear

Recently, the market expects that the temporary storage corn acquisition policy may withdraw after the new corn is listed this year, and even if it does not exit, the temporary storage purchase price is expected to be reduced, which will weaken the policy support factor of corn price. Zhang Zhixian, deputy director of the China Grain Network Yida Research Institute, believes that no matter whether the northeast corn producing areas implement the temporary storage corn acquisition policy this year, the market-oriented pricing trend of corn prices in the new season has been clear. In a normal year, the operating range of domestic corn prices in the new year will fall to a new low platform.

Changes in corn purchase policy will lead to grain holders at all levels to speed up the sale of corn in the third quarter. On the one hand, the speed of corn sales by traders is likely to accelerate, which has already begun in the second quarter and will continue in the third quarter; on the other hand, the rotation of grain sources at all levels of reserves will also speed up the rotation. In view of the changes in the temporary storage policy and the low consumption of downstream products, processing enterprises will continue to maintain low inventory in the third quarter, and even do not rule out the possibility that some enterprises will reduce the level of start-up at the end of the third quarter and wait for new grain to come on the market.