Will drought in the main corn and soybean producing areas affect food prices this year?

This year's drought can be said to run through the whole maize growth period, in the maize seedling stage due to the lack of water in the field, affecting the germination rate, the emergence rate of corn is uneven, and for those who emerge in the field, many will also appear weak seedlings due to late drought. In addition, due to the situation of large and small seedlings of corn, the population structure is unreasonable, maize in the heading stage will also appear incomplete pollination or unable to pollinate, protruding or protruding ear. It should be said that the corn inspection has been confirmed this year, and the only hope for all farmers is to be able to sell for a good price this autumn.

However, as far as this year's market is concerned, Scientific Xingnong believes that the price increase is still limited. I have pointed out many times before that the current situation of corn in our country is good constantly, and the price is not rising! The reason for the emergence of such a strange situation, the scientific development of agriculture believes that it is caused by the following reasons.

Policy auction

If you want to say that temporary storage has the greatest impact on the corn market, corn prices have been floating red all the way from the Spring Festival to mid-March. in just one and a half months, corn prices have risen by 20%, but an auction in March suppressed the price. The auction of temporary storage has played an important role in the stability of grain prices, and naturally it will also play a restraining role in the process of rising grain prices. Through the invisible hand, it adjusts the supply balance of the market and ensures the stability of corn prices this autumn.

The corn market is in ample supply.

It is said that the corn supply this year is mainly due to sufficient temporary storage of corn. According to the agency, there are still 100 million tons of corn in temporary storage, which is enough to ensure the stability of the market with such a huge amount of corn supply. According to many media estimates, according to the demand of this year's corn consumption terminals and the domestic corn production capacity this year, the corn shortfall this year will exceed 20 million tons, but even if this figure can finally be confirmed, in the face of 100 million tons of temporary reserves, do you think the corn price in the market can rise? Can only say that it is difficult, very difficult!

To sum up, it is indeed difficult for corn prices to rise this year, but as inventories continue to decline this year, and production capacity has been reduced, there is wave after wave of positive factors for corn, coupled with the rising cost of agricultural materials this year. I believe that corn prices will rise this autumn, but as mentioned above, do not hope too much, it would be nice to rise by a small margin.

For soybeans, there is a different vision. according to various media estimates, after reducing the amount of soybeans imported from the United States, China's soybean imports this year will be 10 million tons less than that of 2017, so there will be a strong stimulus for China's domestic soybeans, and the price rise will also be a high probability event. Although the current soybean price has not shown much advantage, but with the passage of time in the future, the price rise will be a high probability event.

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