Although the corn subsidy policy has come, the increase in corn prices is not obvious.

With the corn subsidy policy coming, will corn prices rise again?

Seeing this problem, it made me reflect on another problem: recently, the corn market has been good, but the corn price has not risen yet! Although there is no answer and subsidy policy here, it is very similar to the question, so can this good make the price of corn rise?

Friends who follow the corn market should be more aware that there has been almost no decent market since the corn price fell in mid-March. Now, a series of positive factors, such as imposing 25% tariff on American corn, increasing logistics costs, uneven arrival in Northeast China, and weather high temperature corn starch demand entering the peak season, have still failed to support the current price to form a reverse counterattack.

From the point of view of the reason, it is mainly due to the relatively weak demand in the current domestic corn market, and another major factor is the high amount of temporary storage. Two major factors have restricted the further rise in corn prices.

Recently, corn prices in many areas have been affected by freight increases, corn prices in many areas have also risen to a certain extent, and the issue of corn tariffs in the United States has also prompted people to be optimistic about corn this year. But we should also recognize that there is no fundamental change in the current demand for the entire downstream terminal of corn.

For example, feed corn, the current pig farming market is still no fundamental change, most farmers do not dare to easily expand production capacity, for feed consumption is limited. As for corn processing enterprises, although their production capacity has expanded, the temporary storage is still maintained at an auction quota of about 8 million tons per week. It has greatly alleviated the supply situation of the current corn market, and the corn auctioned recently is basically 15, and the corn quality of 16 years is also relatively good, even reaching the level of feed use, which is fundamentally different from that of April and May auctions. after all, the corn at that time could not make up for the feed gap.

For the corn market, the greatest pressure is probably temporary storage, due to excessive domestic inventory pressure. There has been no break in this year's temporary storage auction. Today, high-quota and high-frequency auctions are still maintained, frustrating many previous attempts to hold off corn auctions in July.

At present, with the imposition of tariffs on American corn, it is expected that the amount of corn from the United States is expected to decrease, but the implementation of corn quotas in China, in fact, the impact of imported corn on domestic corn is also limited. But after all, it is also good, but also conducive to the rebound of corn prices!

Now is the thirteenth week of the continuous auction, the trading volume is also gradually declining, the premium rate has also increased, according to this trend, the auction is expected to be suspended. And a series of positives in the market also supported the upward price of corn. However, in the context of the temporary storage sell-off, the market food source is guaranteed, in the short term, corn prices may not be able to form a counterattack, prices may still maintain a volatile pattern!

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