What should the national temporary corn storage policy do with you?
Since 2008, the national corn temporary storage policy has been in operation for six years. The implementation of the national temporary reserve policy is for the purpose of ensuring national food security and maintaining farmers' income. After the introduction of this policy, it also gave full play to its own value in the early stage. When the new corn goes on the market, the national temporary storage corn acquisition will be beneficial to support the corn price, on the contrary, when the corn price continues to rise, the corresponding temporary storage corn auction will suppress the market corn price to a certain extent. The auction and acquisition of national temporary storage corn has always been the focus of corn market. However, looking back at the effectiveness of the temporary storage policy in recent years, the overall effect is not ideal, and it even brings an imbalance between supply and demand in the corn market, resulting in excessive market supply.
In 2012, more than 3000 million tons of corn were purchased by the national temporary storage in 2012, and more than 70 million tons were purchased by the national temporary storage in 2013. At the Seventh International Corn Industry Conference, Li Jiagui of the National Grain and Oil Information Center and the Market Inspection Department mentioned in his theme report on "National temporary Storage Policy and its impact on the Market": "the state's acquisition of more than 35 million tons of corn has broken the balance of market supply and demand." however, in 2013, when the national temporary storage corn was doubled in 2013, when the new corn went on the market, The problem of excess supply and demand is bound to appear in the domestic corn market.
Although domestic corn has been affected by dry weather and Rain Water for several days this year, corn has been affected to a greater or lesser extent, and there is a problem of yield reduction. However, in terms of overall yield, domestic corn can still maintain a balance this year, and the yield reduction is not as serious as previously expected. Under the situation of "high inventory", it is generally believed that the corn market can not jump out of the pattern of "ample supply and demand, supply exceeds demand" after all.
Data show that since the national temporary storage corn auction began on May 22 this year, the total trading volume of national temporary storage (including inter-provincial transfer depots) has reached 25607949 tons. From July to August this year, the price of stored corn has been rising, but since September, the auction has cooled significantly, the transaction price has dropped, and the transaction rate has dropped. The auction "low temperature tide" has continued to this day, with a turnover rate of only 5.77% in the national temporary storage (including inter-provincial transfer warehouse) corn auction, which ended on October 9-10.
Looking back at previous years, the annual national temporary storage corn prices are basically "released" in mid-November, except for last year's temporary storage corn prices announced in advance. At the national autumn grain purchase work conference, which ended previously, the relevant leaders pointed out that the acquisition of corn support market this year is more likely, but did not mention the temporary storage price of corn. At present, with the listing of new grain and the weak fluctuation of corn prices, the future purchase of corn and the purchase price must be the focus of the market.
"one wave after another," while this year's national temporary corn purchase is still uncertain, some food experts in the industry have revealed that the National Development and Reform Commission, the Ministry of Agriculture and other departments are planning to completely abolish the temporary reserve policy and intend to replace it with a more market-oriented target price subsidy system. Another person familiar with the matter revealed that the general direction of ending the temporary storage policy of corn, canola oil and sugar has been set, and corn may become the next pilot variety, which will be implemented as soon as next year.
It can be said that the national temporary corn storage policy makes people "happy and sad at the same time", but what the future national corn storage policy should be, it may really be "riding a donkey to read the songbook, wait and see"!
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