How will the price of corn develop in July? Prices are expected to pick up in July
Now that we have just entered June, when we look forward to the trend of the corn market in July, we still need to take a look at the current and future grain storage trend. Now that the corn market has entered the policy market, the policy determines the direction of the market, and the surplus grain in the hands of farmers has been sold out, so let's take a look at the developments in July from the policy perspective.
Looking at the market situation in previous years, basically, after entering June, the market will enter a state of rest and recuperation, but this year, the situation is quite different. May in previous years was the stage of intensive auction of grain reserves, and this year it entered the auction policy in April. coupled with the auction in May, the market as a whole sold out 30 million tons.
It is reported that about 1/3 of the volume has been sold in the northeast, that is to say, 2/3 of the inventory has not been sold. In addition, wheat has been gradually harvested in a large area, the purchase of wheat grain has also been gradually opened, and the granary has to vacate the warehouse for wheat. That is to say, in the following market, the temporary reserve may continue, and the market pressure is still relatively large.
Considering the current situation, in the traditional market auction gap period of June and July, there will not be the same rising market as in previous years.
However, farmers who have grain need not be overly pessimistic, and there is also some good news about corn in the market. For example, the reduction in corn production caused by the severe drought in Northeast China this year has become a foregone conclusion. For example, corn sown in most areas of Jilin and Heilongjiang has experienced delays in corn seedlings.
With everyone's expectation of a reduction in corn production after autumn, the market supply of corn will gradually tighten. And from the trend of the corn market, corn prices have basically entered the bottom. There is also a lot of hope that prices may pick up in July.
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