Corn prices in Northeast China continue to rise, farmers' sales enthusiasm is high.

It is observed that the temporary storage purchase of corn is coming to an end, but the heat remains unabated, and the price of corn in Northeast China continues to rise steadily, while the price increase of corn in North China and southern China has obviously slowed down due to the lack of the support of temporary storage policy. there has even been a slight decline in some places.

According to China Rural Voice "three Rural China" report, since mid-March, due to the impact of the large number of national temporary reserves and acquisitions, the circulation of grain sources in the producing areas appears to be somewhat tight, and corn prices as a whole continue to maintain an upward trend. In April, farmers do not have much surplus grain, and the national temporary storage corn auction will also begin. In such a case, how will China's corn market develop in the future? How will the market change?

The Huize Farmers' Cooperative in Gongzhuling City, Jilin Province is a large cooperative with more than 4000 farmers and more than 60, 000 mu of land. The cooperative mainly grows corn. At the end of 2014, there was a bumper corn harvest here, and the price situation was also very optimistic. Speaking of corn prices this year, member Wu Guangyu is quite satisfied:

Wu Guangyu: now it is about 1.16 yuan. The price is very high and stable.

Wu Guangyu told reporters that when the price is good, the sales enthusiasm of farmers is also high.

Wu Guangyu: there is still 1/10 left. There is not much left.

It is understood that since the acceleration of the purchase of temporary storage corn in early December last year, the purchase price of deep processing corn in Northeast China has risen nearly 300 yuan per ton, and the increase in North China and southern regions is generally more than 100 yuan per ton. Liu Dong, an analyst at Zhuochuang Information, said that with the Spring Festival as the boundary, the increase in national corn prices is relatively close, but so far, corn prices in North China and the south have declined, only corn prices in Northeast China are still strong.

Liu Dong: the purchase volume of temporary storage in Northeast China is very large this year, which is also the main reason for the strength of corn in Northeast China at present. According to the latest data, as of April 5, the purchase volume of temporary storage is 77.58 million tons, which is far higher than that of last year. In terms of policy, first, the amount of temporary storage and purchase is relatively large, and the source of food at the grass-roots level is very small. At present, the overall progress of grain harvest in Northeast China has reached more than 90%, so farmers still have less than 10% of the grain in their hands, so the situation of tight supply in the later period is inevitable.

According to the State notice on issues related to the acquisition of temporary Storage Corn in Northeast China in 2014, the deadline for the acquisition of temporary storage corn is April 30, 2015, but according to Liu Dong's observation, the heat of temporary storage acquisition remains unabated. Corn in Northeast China continues to rise steadily, while the price increase of corn in North China and Southern China has slowed down obviously due to the lack of temporary storage policy support. There has even been a slight decline in some places.

Liu Dong: there has been a slight decline in some parts of North China, such as Shandong, Henan and Hebei, but the rate of decline is not large, about 20 yuan per ton, and the price in the southern sales area has basically not changed much. The main reason is that the previous increase is relatively large, there is a digestion time, the second overall purchase and sales is relatively stable.

With the approval of the relevant state departments, the Anhui Grain Wholesale Market and related networked markets held a national policy grain bidding fair from April 7 to 9. Today (9th), 317500 tons of national temporary storage corn and imported corn will be auctioned, Liu Dong analyzed, which may affect later pricing.

Liu Dong: everyone is looking at the auction price, including trading volume, and then deciding on the later operation, so now the wait-and-see atmosphere in the market is relatively strong. Although the overall auction volume is not large, and the auction is mainly in sales areas, such as Anhui, Hunan, Hubei and Jiangxi, generally speaking, this is the first auction this year, and people are more concerned, including price and trading volume. It may have some impact on later pricing and strategy.

Jiang Hongxia, an analyst at Nanhuanqiao Agricultural and sideline products Wholesale Market in Suzhou, Jiangsu Province, believes that before the new corn goes on the market this year, although domestic corn prices will not rise by 300 yuan / ton in two weeks as last year, but on the whole, domestic corn will show a pattern that is easy to rise and difficult to fall, and the specific increase will have a lot to do with the temporary storage of corn.

Jiang Hongxia: the main reason is that there is a large amount of corn in storage, and in 2013, a large number of corn from Northeast China has been transferred across provinces to all parts of the country, and these corn can be released from the warehouse to supply the market at any time. From the analysis of the market situation of the southern corn selling area, the quantity of imported sorghum and barley is growing rapidly, and the inland corn and northeast corn do not have any advantage in price. if we take into account the situation that the domestic pig breeding industry and corn deep processing industry are still on the verge of loss, the corn "collection and storage market" will not last long, and the analysis from the later market development trend. Although it is difficult for consumption to form significant support for corn prices due to the prominent structural contradiction of supply in the domestic corn market and the relatively high cost of purchasing policy corn before the listing of new corn this year domestic corn prices will be easy to rise but difficult to fall.

At present, corn prices are leveling off, but overall, agricultural products such as corn and soybeans have hit new lows in recent years. Some people hold that "Belt and Road Initiative" is the fulcrum for the take-off of China's major agricultural products and the "east wind" for China's agriculture to "go out." However, in order to turn the "east wind" into a good opportunity, we still need to seize the opportunity in many ways.