Judging from the market conditions in June, prices were generally in a declining state, and by the end of the month corn prices also rebounded somewhat. At the end of the month, Shandong Zhucheng Xingmao quoted 1830 yuan/ton, down 40 yuan/ton; Xinfeng Starch quoted 1864 yuan/ton at the end of the month, down 12 yuan/ton; Yishui Dadi quoted 1840 yuan/ton at the end of the month, down 4 yuan/ton.

However, I personally believe that although prices rose somewhat at the end of the month, this is not sustainable.

First, if we look at the distribution of the recent upward trend, the areas that rose are basically concentrated in North China. As everyone knows, China's main corn-producing areas are concentrated in Northeast China and the Huang-Huai-Hai region. The recent strict traffic inspections have driven up transportation costs, which directly led to the price increase in North China. Corn from Northeast China and the Huang-Huai-Hai region has difficulty entering the North China region, resulting in a relatively tight market supply.

Second, US trade tariffs are about to be imposed. On July 6, a 25% tariff will be imposed on US agricultural products such as soybeans and corn. Affected by this news, imported corn has declined somewhat; for example, 120,000 tons of US soybeans were recently returned.

Third, the frequency of auctions has recently accelerated. At present, 92.6362 million tons of corn have been put on the market from temporary storage, with 49.57 million tons sold, basically a transaction rate of more than 50%. Looking at June, the auction frequency accelerated somewhat, and at present around 50% of the temporary storage corn has already been shipped out of the warehouses. Afterward, it seems there is still no intention to stop the grain reserve auctions, and I am afraid the future market will remain murky.

Fourth, due to recent environmental protection measures and seasonal shutdowns, enterprises' production capacity has also declined somewhat, leading major corn deep-processing enterprises to reduce their demand for corn.

In summary, this round of increases will probably be hard to sustain, but it also cannot be called a decline. Kexue Xingnong believes that with the grain reserve auction reserve price as support, the market's decline will be limited, and under the premise of grain reserve support, the room for increases still looks unoptimistic. Therefore, everyone should not place too much hope in this round of increases.

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