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Corn suddenly fell in a large area, but if you look closely, behind this decline is a new round of rise!

author:Xiao Feng talks about the world

Corn market supply decreased, prices rose, and prices fell again after the rains

Preface

Corn is one of the main food crops on the continent and an important commodity grain. In recent years, with the continuous advancement of agricultural modernization, the planting and production level of corn has been significantly improved, but due to the influence of climate, market demand and other factors, the price of corn market fluctuates greatly, which brings certain economic pressure to growers and related enterprises. Recently, due to the impact of unfavorable weather such as rainfall, there has been a certain reduction in supply in the corn market, which has led to a certain increase in prices, but with the impact of rainfall, the price of corn in the market has fallen again. This paper will start from the background reasons for the price fluctuation of corn market, analyze the main factors affecting corn prices, and make a certain outlook on the future development trend of corn market, in order to provide some reference value for relevant enterprises and government departments.

Corn suddenly fell in a large area, but if you look closely, behind this decline is a new round of rise!

1. The price of corn in North China turned from falling to rising, and the decrease in supply led to a bullish market, but the price fell again after the rainfall

1. The supply of corn in the market has decreased, and the price has risen

Recently, under the influence of continuous high temperature weather, coupled with a certain degree of drought, the growth of corn in North China has been affected to a certain extent, the growth rate of corn is relatively slow, and some diseases and pests of corn have also begun to appear, which has a certain impact on the yield and quality of corn. In addition, as some places begin to enter the heading stage and grain filling stage of corn, the demand for moisture of corn gradually increases, but due to the influence of rainy weather, the rainfall in some areas is less, which also brings a certain adverse effect to the growth of corn. Overall, the current corn growth situation is not very ideal, and this year's corn production is expected to decline to a certain extent.

Affected by the news that the growth of corn is blocked, the reduction of corn market supply has also become a hot topic in the market, some corn dealers and enterprises began to worry about the supply of corn, and began to appropriately increase the purchase of corn, which also made the market price of corn began to rise to a certain extent. According to the monitoring of relevant data, into the middle of June, the price of corn in North China has changed from the previous decline to an upward state, among them, the price of corn in some areas has increased by about 0.2 yuan / catty, and with the passage of time, the rising momentum of corn prices is still increasing.

2. Affected by rainy weather, corn prices fell again

At the time when the price of corn market rose, a more obvious rainy weather appeared in North China, although this rainy weather brought some help to the drought-stricken corn field, but it is not very beneficial to the overall corn growth, especially for the corn that has entered the grain filling period, excessive rainfall will have a certain impact on the quality and yield of corn.

Affected by the rainy weather, the supply problem of the corn market has been alleviated to a certain extent, and the growth of corn in some places has also been improved to a certain extent, which has also caused the market price of corn to fall to a certain extent. According to the monitoring data, the current corn market price has changed from the previous rising state to a falling state, among them, the area seriously affected by the rainfall, the price of corn has fallen by about 1 corner, and with the continuous impact of rainy weather, the downward momentum of corn prices will continue to increase.

Corn suddenly fell in a large area, but if you look closely, behind this decline is a new round of rise!

Second, with the increase in demand, the price of corn continues to rise, the inventory of enterprises is urgent, and the phenomenon of "grabbing grain" has appeared

1. Corn prices are rising

Although the current price of corn has fallen to a certain extent, the supply problem of corn has not been fundamentally improved due to the impact of the overall growth blockage, on the contrary, as some areas enter the critical growth period of corn, the supply problem of corn will continue to be affected to a certain extent.

On the other hand, as corn begins to enter the harvest season in some areas, the market supply of corn will gradually decrease, while the market demand for corn has not decreased significantly, but is still increasing, which also makes the market shortage of corn begin to gradually appear. Affected by the news of tight supply in the market, some corn dealers and enterprises began to appear a certain phenomenon of "grabbing grain", and they have increased their efforts to buy corn, hoping to reserve a certain amount of corn as soon as possible to cope with the further rise in corn market prices in the future.

2. Enterprise inventory is urgent

With the continuous rise in corn prices, the inventory problems of some corn processing enterprises have also begun to be impacted to a certain extent, and their raw material costs have begun to rise significantly, and they cannot pass on this part of the cost to the market for a while, which has brought certain difficulties to the production and operation of enterprises.

In addition, affected by the price fluctuations of corn market at home and abroad, the order volume of some enterprises has also declined to a certain extent, and they have begun to have certain concerns about the demand for corn use, which has also brought a certain adverse impact on the later sales of enterprises. In order to better resist the impact of market price fluctuations, some companies have also begun to pay more attention to the futures market, hoping to carry out certain hedging through the futures market to avoid market risks.

Corn suddenly fell in a large area, but if you look closely, behind this decline is a new round of rise!

Third, the prospect of the corn market is considerable, the trend of surplus grain reduction is irreversible, and the price has room to rise

1. The market sentiment is bullish and the price has room to rise

At present, the supply problem of the corn market has not been fundamentally improved, on the contrary, as the growth of corn has entered a critical period, the supply of corn will continue to be affected to a certain extent, which also makes the market shortage of corn begin to gradually appear, and the market has begun to worry about the supply of corn in the later period, and has begun to have a certain "grain grab" sentiment.

On the other hand, affected by the hindrance of corn growth, the yield of corn has also begun to be worried, it is expected that this year's corn output will decline to a certain extent, and the market demand for corn has not declined significantly, but is still increasing, which also makes the market supply problem of corn more prominent, and the price of corn will also have a certain room to rise.

On the whole, the current corn market sentiment is more bullish, the market generally believes that the price fluctuations of corn are mainly affected by supply and demand, and the current corn price has fallen to a certain extent, which gives the market a certain opportunity to replenish the position, therefore, the later corn price is likely to rise to a certain extent again.

2. The trend of surplus grain reduction is irreversible

In addition, from the perspective of the macroeconomic situation, the current corn market price fluctuations are also affected by the macroeconomic situation at home and abroad, especially by the impact of international market price fluctuations, the mainland corn market price will also have a certain transmission effect, which also makes the domestic corn market price fluctuations more drastic.

On the other hand, with the continuous advancement of agricultural modernization in the mainland, farmers' confidence and enthusiasm in corn planting have also been affected to a certain extent, and they have begun to have certain doubts about the planting prospects of corn, which also brings certain uncertainty to the future corn supply problem, therefore, the price fluctuation of corn market in the mainland will also be affected by the macroeconomic situation and policies.

Corn suddenly fell in a large area, but if you look closely, behind this decline is a new round of rise!

IV. Conclusion

On the whole, the current corn market price fluctuations are affected by many factors, whether from the supply or demand side, corn price fluctuations have a certain complexity and uncertainty, therefore, in the context of the current corn price fluctuations, all parties need to strengthen the attention to the corn market, timely understand the market dynamics, and do a good job in market response.

At the same time, government departments also need to strengthen policy support and risk warnings for farmers, protect the interests of farmers, and ensure the stability and supply of the grain market through policy guidance and market supervision, so as to promote food security and sustainable agricultural development in the mainland.

In addition, it is also necessary to strengthen industrial coordination and risk management, reduce the impact on upstream and downstream enterprises in the industrial chain, give full play to the risk management function of the futures market, provide enterprises with good risk management tools and services, and promote the stable development of the agricultural product market.

In this context, it can be seen that although the price fluctuations of the corn market have brought a certain impact on relevant enterprises and farmers, from a macroeconomic point of view, the current price fluctuations of the corn market also reflect the certain results of the structural reform of the agricultural supply side of the mainland, and also bring certain enlightenment to the development of related industries.

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