Along with the Coming of New-Season Corn Availability on the Market, Why Did Temporarily-Stored Corn Auction Volume and Trading Volume Keep Increasing?

By CnAgri2018-09-19 10:52:06 Print Since entering September, some early-maturing spring corn has been sporadically available on the market, and new-season corn would be available in large quantities in less than a month. However, since August, trading volume and trading rates of temporarily-stored corn have been gradually improving. On September 7^th, the weekly trading volume of temporarily-stored corn auctioned was 4.3 million MT; on September 14^th, the weekly trading volume still reached 3.93 million MT. BOABC’s analysts think the main reasons are as follows: 
(1) Owing to the expectations on a reduction in output and in quality in the northeast, new-season corn prices possibly would ascend. Compared to that, temporarily-stored corn has obvious price advantage. 
 
(2)The seasonal demand for corn is increasing. It is busy season for feed mills to stock up the materials; along with the end of summer overhaul, an increase in demand for further processed products and a rebound in the operating rate, the demand for corn is increasing.
(3) Because of relatively long time of warehousing out temporarily-stored corn, grain-consuming companies consider purchasing in advance in order to avoid the shortage of supply during the period of new-season corn replacement for the previous years.