The corn market seems to have cooled, grain reserve auctions continue, but a turning point is right around the corner

Grain reserve auctions continue, and although the corn market seems to have cooled, a turning point is actually right around the corner. Science Xingnong believes that the corn market is expected to rise next. According to previous media forecasts, because of the recent strong push for soybeans, as a competing summer grain crop, its area has declined somewhat. What is worse, this year's severe drought in Northeast China may cause a general reduction in corn production in the Northeast. This expectation is good news for the rise in autumn grain prices this year, and the recent steady increase in the base price of grain reserve auctions also has a boosting effect on market prices.

Judging from the corn auction transaction sheet of the grain reserve on June 21, the overall transaction rate (31%) is on an overall downward trend, while the auction base price has also risen to 1500 yuan per ton. It is expected that grain reserve auctions may come to a halt, and in this way, the market is expected to see a wave of gains in the future.

This year's weather factors have also directly led to expectations of reduced production. Drought during the corn seedling stage will have a huge impact on overall growth and development, severely restricting corn yields. Traders with a keen sense of smell even regard this as a major positive for the corn market and actively participate in corn grain purchasing.

From recent media reports, the drought situation in areas of Northeast China such as Jilin, Harbin, and Suihua is still quite severe! Seedling emergence is poor, and at this time corn growth is also restricted by drought! In many areas of Northeast China, the corn emergence rate is only 50%, and in areas with severe drought, the emergence rate is even less than 30%. In May, a netizen from Northeast China once asked whether corn could be removed and replanted with soybeans! This shows that this year's overall corn production will face the risk of a further decline.

Although at this juncture when the country is vigorously promoting supply-side structural reform of corn, corn supply is relatively ample, in recent years China's corn stocks have been declining overall, and the overall corn supply will also become tighter.

There is news saying that this year farmers basically have no surplus grain on hand. Whether for grain processing enterprises or livestock and poultry feed processing enterprises, high-quality corn is in extreme demand. For example, for the grain auctioned by the grain reserve this year, the overall premium for relatively high-quality corn can reach 190 yuan per ton!

For the current market, it should be said that the market does not lack grain, but it lacks high-quality grain! In the future corn market, high-quality corn will be more competitive, until the new corn harvest this autumn! And after the temporary storage corn auctions are suspended, the corn market will also gradually set sail. Moreover, with national policy support for corn deep-processing enterprises and the expansion of production capacity, corn-growing farmers in the future are expected to truly achieve "grain in the house, no panic in the heart."

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