Big rise! Corn highlight moment! The processing factory raises the price three times a day, but the growers still don’t want to sell!
Today, the news about corn is “rising”. Not only did spot quotations across the country generally rise, but corn futures prices on the Dalian Commodity Exchange also rose sharply, with the main contract rising by 30 points, approaching the previous high of 2,730. In the financial market, the overall sector of corn concept stocks surged by nearly 4%, driving the general rise of listed companies related to the domestic seed industry and feed production.
On November 8, Sinograin’s two-way bidding transactions, bidding sales, and bidding purchases for corn purchases and sales in some areas of Northeast China, North China, and South China were very popular, which shows the tightness of corn.
In the spot market, the largest increase today was in North China. According to market news, due to the reduction in arrivals, processing companies in North China have raised prices for grain collection. Some factories have even raised prices three times a day. The purchase price of Hengren Industry and Trade in Zaozhuang, Shandong has risen to 3,000 yuan/ton, and has remained unchanged for two days. Adjustment.
Another area that has seen a sharp increase is the main production areas in Northeast China. Affected by the cold wave, heavy snowfall and rainfall occurred in most areas of the Northeast, affecting the amount of new corn. Extreme weather not only boosts the futures market, but also affects grassroots grain sales enthusiasm. Since low temperature is conducive to the storage of tidal grain, farmers who are not in a hurry to cash in and have strong storage capacity will choose to wait and see for the time being, holding grain and waiting for the increase.
Northern ports were also affected by snowfall, with reduced port volume, tight supply and high prices. Although the current cargo volume of southern ports has increased, prices are still strong in conjunction with northern ports.
Today, the purchase price of 15% moisture content of old grain in Jinzhou Port is 2590-2610 yuan/ton, which is the same as yesterday. The transaction price of 15% moisture corn bulk grain in Shekou Port, Guangdong was 2850-2870 yuan/ton, up 10 yuan/ton from yesterday.
Prices in southern sales areas generally rose today, as rising prices in production areas finally affected end demand. In the past, feed mills in the south often used wheat instead of corn to offset part of the cost pressure caused by rising corn prices. With the recent sharp rise in wheat prices, the price advantage is no longer obvious. Feed companies are considering adjusting formulas and increasing the proportion of corn. Replenishing stocks is the next step for most feed companies.
It must be said that the sharp rise in corn was both expected and unexpected.
Unsurprisingly, the supply of corn is currently in short supply. The supply and demand in the North China market, the two main producing areas, are tightly balanced, and the Northeast market has been unable to increase the volume. The market grain circulation is far from meeting the demand; unexpectedly, according to the Based on the experience of previous years, as Northeast corn gradually comes on the market in November, it is more in line with market rules for corn prices to gradually decline.
Although the current rise is the main theme of the corn market, and the market generally recognizes the reasons for its rise, we still cannot ignore the risks involved. After all, the increase in corn production in the Northeast production areas this year has been officially confirmed, and the huge supply Quantity is like the sword of Damocles hanging over the head, ready to explode at any time, and can reverse the long-short game situation in the market at any time.
To sum up, due to the increase in various planting costs this year, growers are very reluctant to sell, which will affect the market pace of new grains to a certain extent. But in which year did farmers hesitate to sell? As the end of the year approaches, most farmers’ needs for loan repayment and cash out will still prompt them to speed up shipments.
This violent rise in the corn market will not last for a long time. Quotebao believes that this time the extreme weather has passed and new grains are concentrated on the market, this is the time when this market wave will die down. By then, where corn prices will go will depend on the pace of new grain production and logistics conditions in the production areas.