The past week in China's corn market has been a critical juncture in policy and trade. Domestic market for corn reserves last week corn deep processing enterprise subsidies rumors stirred by auction and the North-East, the ups and downs, weekend started across the country fall again now, food prices only corn for north China rose pattern. The reason is that this is related to the local area (especially shandong), which is a concentrated area of deep processing enterprises, which is related to the large consumption of corn and low initial inventory level.
Most at present, the price of corn in north China has reached 2000 yuan < tons level, the level is higher than the same period last year nearly $300 tons, in the deep processing enterprise "just need" and auction limited number of cases, the price is able to find some support, but once the auction comes not mud and sand flow together, and many in the north China corn also faces and store the problem of corn "homogenization" competition, so still that sentence "flowering KanShe straight must fold," besides, in the recent government bulk storage corn PaiMaiSheng has more and more big.
Due to the time of storage in the sale and comprehensive independent rotation remain uncertain and north huanghuai number surplus grain at the grass-roots level has not much, amid, huanghuai region of north China over the weekend started to cool, substantially parts and accompanied by rain and snow weather, affect local transport and corn, and there is part USES the enterprise production needs, partly support the corn market, huanghuai region of north China over the weekend, then corn rose again, as of today (March 19), shandong, hebei region corn deep processing enterprises purchase price in 1920-2100 yuan/ton, part of the last week rose 20-40 yuan/ton, corn raw material costs rose again, starch market are stirring.
In the short term, on the whole, the raw material corn prices higher, cost down under the support of hard, corn starch or price will also be defensive, however, the recent domestic starch processing enterprises starts remains high, and the downstream demand is not ideal, enterprise overall supply is abundant, starch is expected to appear big short-term corn starch is also difficult to rebound, as a whole or sideways sorting will be steady. In the later stage, it is necessary to continue to pay attention to the corn auction news. Once the storage of corn is officially opened, the supply will be under pressure, which will affect the price trend of corn and starch.
The acquisition price of the northeast enterprise is relatively stable, the enterprise stocks are relatively sufficient, the downstream goods are not free, and there is some concern about the reserve auction in the later market, and the purchase intention is weak. Local traders go goods mood increased, evident in the jilin on business, at the same time as the nearly two days deep processing enterprises to actively raise, northeast stocks the arrival of the goods is more, the maize breeding colonization demand is relatively flat, price increases slightly. Landing on the market, although the jilin corn processing policy formation, but subsidies are not as good as usual, and the scale of corn storage, extruded corn upside, positive effect or limited, but the primary surplus grain shortage, the recovery of deep processing industry and the expansion of production capacity to stimulate demand, cast store before periodic tight supply and demand for corn, expected 17/18 of supply and demand gap enlargement, policy guidance trend positive constant, cast downward price after storage space is limited.