It is difficult to see a deep tone in the low-key corn price in the temporary storage auction.

The "exploratory" auction of corn stored in the south has ended. In view of the fact that there is no worrying "low price" in the reserve price of the auction, the intention of the national auction is obvious, and the auction has a limited negative impact on the market.

The temporary storage auction is carried out in a "low profile"

On April 9, the eye-catching first round of regular auction of temporary storage corn in 2015 finally came to an end. As expected, under the attraction of price comparison, all imported corn was sold, while domestic temporary storage corn was mainly second-class corn. The starting price was not as low as some market participants expected, and the negative impact of the auction was digested. At the same time, the relevant departments of this round of auction "exploratory" and "trend" are beginning to emerge.

Judging from the pricing level of the temporary storage corn trial auction, the intention of the relevant departments to sell the excess inventory after the temporary storage has completed a large number of acquisitions is very obvious, which is also the fundamental reason why the reserve price of the auction has not been substantially reduced. It also provides guidance for the future trend of the corn market.

It is understood that at present, farmers in Northeast China have very limited surplus grain, and after Heilongjiang and Liaoning, Jilin farmers have made nearly 90% progress in corn sales, and the market generally expects that it will be very difficult to purchase grain in a month's time.

The progress of grain sales by farmers is close to that of last year.

According to a follow-up survey, at present, the progress of corn sales by farmers in northern China is close to the level of the same period last year, and the final purchase of corn in temporary storage is just around the corner. Under this background, it is quite possible for last year's history to repeat itself, but we still need to pay attention to demand whether we can hit last year's high again. It is understood that before and after the Spring Festival this year, the inventory level of grain enterprises in various parts of the country is significantly higher than the same period last year, and the average level of imported grain to Hong Kong in recent months has exceeded 1 million tons.

In view of the fact that the current temporary storage corn auction is relatively low-key, its adverse impact on the market is slowly eliminating, and it is expected that the domestic corn market will pick up moderately under multiple factors in the later stage, and the medium-and long-term upward trend will not change. Continue to pay attention to the rhythm of the follow-up auction of temporary storage corn.

It is worth mentioning that the first ship of Argentine sorghum is about to arrive in China in April, and China's corn import quota is also consuming heavily under the active purchase of ships, and the medium-and long-term pressure on domestic grain imports to Hong Kong should not be taken lightly.