Six reasons for the recent decline of domestic corn price

Introduction: the main reasons for the recent decline of domestic corn prices include the following six aspects: First of all, there is a recent market news that under the current situation that the price of domestic corn continues to rise, the state food authorities are considering to appropriately intervene the price of domestic corn market by increasing the national reserve corn into commercial corn, and then outbound sales The news began to appear at the end of June, and soon began to have an impact on the sales psychology of corn traders in the northern production areas, especially in the northeast On the one hand, traders said that even if the grain authorities increase the sales volume of national reserve corn, they will only temporarily reduce the market price, and the corn price will still show an upward trend in the future On the other hand, they are still willing to sell part of the corn before the National Reserve corn actually leaves the warehouse For this reason, the number of closed positions of corn in Dalian port has increased since the end of June, and the port quotation has been reduced since the first ten days of July Secondly, the drought in Northeast China has been alleviated and relieved after the continuous rainfall in mid June, especially in the central part of Jilin Province, which suffered heavy disasters in the early stage, the growth of corn has been significantly improved After the drought was basically relieved, people's psychological expectation of autumn grain production changed from pessimism to optimism Third, the government departments of the major corn producing provinces in the north are making relevant sales policies, such as adjusting the distribution methods of grain storage subsidies, in order to reduce the psychology of grain departments' reluctant to sell, and stimulate the increase of the quantity of grain out of the warehouse Fourth, in the process of corn price rising in the early stage, although the breeding and feed enterprises have been worried about corn price rising and continue to purchase, the increase of purchase cost and the shortage of working capital have gradually affected the purchasing ability of grain enterprises With the lifting of the drought in the north and the spread of other bad news, the wait-and-see attitude of grain enterprises gradually increased Fifthly, in the process of two successive typhoons landing in South China, the quantity of corn transported to the region in the North was affected After the typhoon, the corn transported to Guangdong and Fujian in the near future showed more growth, which also prompted the price of corn in the sales area to fall Sixth, from May to June, the stock of domestic corn in Dalian port has accumulated a lot Because traders are reluctant to sell, the speed of corn transportation and sales in the early stage is not fast This laid a material foundation for the spread of relevant bad news and the decline of port prices (author:) share to feed Weibo share to: