Good news, good news, good news for corn!
Two days ago, we were still saying that corn was jumping high in the toilet and falling too much! But the market is about to change.
As a result, the reality came so quickly, and the corn really rose.
Although it was only a little bit higher, it made the market cry because corn had been falling for too long.
Corn in April can be said to be mired in the quagmire, especially in North China and Shandong, began to fall, the price approached 1.1 yuan / catty, like a basin of cold water poured on the corn market.
If you splash too much, the market will be numb.
And at this time, corn suddenly rose, and the market was shaken.
Why did corn suddenly go up?
In fact, we mentioned two days ago that according to the previous analysis, from the perspective of the objective market, corn is actually in the end, but under the panic of emotions, it is constantly bearish.
But emotions are just emotions in the end, they don't stop for a moment, there is always a time to catch their breath. So when the mood is too tense and slightly relaxed, the corn market can take advantage of the situation to slow down.
The second is the problem of festival shrinkage.
Of course, this shrinkage is also relative, corn since the fall of the endless, the market fatigue has increased significantly, whether to sell grain or not it has fallen, it is better to rest for two days.
In addition, during the May Day period, some companies also issued notices to stop harvesting, and the number of people looking for cars to ship in the market began to decrease, so the decline in corn has been alleviated.
In any case, this sudden rise did delight the market, but it is clear that it may be short-lived. In other words, corn may soon fall back, and this sudden rise and fall market may break many people's waists again.
Why do you have to fall back again?
Because the pressure on corn in May is still very high.
Although there are still 20 percent of the surplus grain in Shandong and North China, the market confidence is obviously not good, even if the main body of grain in hand is actively shipping, broken cans and broken, in this case, the supply of grain sources in the market will not be less.
As for the demand, it is still half-dead.
Feed companies are still standing still, pig prices are confusing, and the wheat harvest is approaching soon, and the wait-and-see mood of enterprises is very strong.
On the one hand, it is also to look at the weak market and not rush to buy, on the other hand, it is also to look at the immediate wheat harvest and want to see if it can take the opportunity to pick up the leakage.
And deep processing is almost at the top.
Before the deep processing was at full capacity, it gave a lot of support to the corn. However, as the operating rate continued to rise, the prices of its main products began to fall.
For example, as of the end of April, the average price of starch in China was 3024.44 yuan/ton, down 3.20% from the previous month, protein powder was 4520 yuan/ton, down 7.38% from the previous month, and alcohol was 5937.50 yuan/ton, down 2.96% from the previous month; DDGS2232.50 yuan / ton, down 3.46% from the previous month.
Corporate profits have shrunk significantly, so deep processing can't withstand it, and the start-up rate is also declining. By the end of April, it had fallen to 65 percent, down 5 percent from the previous month, but still about 15 percentage points above the average for recent years.
However, it is difficult to support it by deep processing alone, so Shandong North China will continue to be turbulent and weakening.
As for the Northeast market, it was originally quite stable, but since the price inverted with North China, some North China corn has reflowed, and the Northeast has not had a good time.
However, fortunately, there is an increase in reserves, and the problem should not be big.
Therefore, from this point of view, the corn in May is still a turbulent and weak pattern, and the overall is still less up and down.
As for the "action" of the policy side, it has also been rumored recently, but it should not be relied on too much when it is not really implemented, just make a reference.
Therefore, the corn in May is still weak and can't help the wind, and I just hope that the wind is not too big, otherwise not only the market can't help it, but the small heart of the main body of grain will also be tortured.
At the end of this article, thank you for reading!