Corn market in the lean season, July prices may rise slightly

We are now in mid-July, and corn market prices remained sluggish throughout the first half of the year. Recently there has been a slight increase, but many people are surely concerned about how long this upward trend can last and how high prices can go. Here Science Xingnong will discuss the July corn price situation with everyone.

In fact, the current slight rise in corn prices is entirely understandable. This year corn prices have been declining for more than three months, and it can be said that corn prices have already hit bottom; going any lower would be very unreasonable. The role of market regulation will automatically adjust prices, so the current rise in corn is a normal phenomenon of price recovery. However, the increase is still very small, and it can be said that the room for further gains is very limited.

In addition, we are currently at a lean-season juncture, and the new corn crop is still about two months away from hitting the market. After more than half a year of corn sales, market corn stocks have already decreased during this period, so corn prices will naturally rise to a certain extent.

But everyone should also have noticed the three-month auction of old grain from the temporary grain reserve. It can be said that the supply of old grain is very ample, which to a certain extent limits the extent of corn price increases. However, last week's corn auction from the temporary grain reserve did not go well: 1.902 million tonnes of corn were auctioned, and the transaction rate declined compared with before.

In addition, corn transport costs have recently risen. This is mainly because transport authorities in the North China region have stepped up enforcement, raising transport costs. The main corn-producing areas in Northeast China find it difficult to enter the North China market, and corn supply and demand have become tight in some areas. This has also caused a slight price increase for corn in the North China region.

There is also the livestock sector, the main source of demand for corn, especially the hog farming industry. Around the Mid-Autumn Festival, demand for hogs will increase greatly. Hogs are currently in the fattening stage, and hog prices had been sluggish for half a year; now prices have already recovered. As the main feed product, corn will naturally reflect this in its price. The rise in corn prices is within a reasonable range.

It can be said that the corn market situation in July is still quite optimistic, but the increase is estimated not to be too large, since after all the room for gains is limited.

The above comes from Science Xingnong.