How much is the corn futures price affected by related commodities

On October 26, yield concerns boosted wheat prices to continue rising. Affected by this, December corn closed up 2.25 cents at 571 cents. The crop progress report showed a decline in the wheat good-to-excellent rating, the market worried about a wheat production cut, and stronger wheat drove related commodities to continue rising. At the same time, uncertainty about global corn production capacity in 2010 and the possibility that the USDA may further lower its yield estimate in its November report provided potential support for corn futures prices. On Tuesday, expected stormy weather in the Midwest was seen as having limited impact on harvesting, and the greater damage the market had previously expected did not materialize.

On Tuesday, the corn benchmark contract continued to roll positions to distant months, with the May contract reducing 35,000 lots and shifting to September, while September corn increased 12,000 lots. The benchmark contract's rollover to a distant-month contract provided price support. Among related varieties, early rice performed weakly under the influence of high-level fluctuations in related commodities, with the benchmark contract increasing 11,000 lots during the day, as the market was alert in the short term to the risk of a correction from high prices. On domestic corn fundamentals, the price of high-quality corn at Guangdong ports has recently risen to 2,180 yuan/ton, and the highest spot quote has reached 2,200 yuan/ton. Farmers in production areas have a strong reluctance to sell, delaying the grain-selling period. After new grain came to market, the market expects corn purchase prices to remain likely to continue rising, which in turn boosts the willingness of futures market funds to push prices higher. For futures operations, in the short term be mindful of avoiding the risk of a correction from high prices; previously established long positions can continue to be held, while new longs may choose the September contract and buy in small amounts on dips.