The Markets Have Strong Long-Term Confidence on Prices after New-Season Corn Availability on the Market, but There Would be a Periodic Low in a Short Time

By CnAgri2018-10-17 14:36:58 Print October is the period of new corn availability on the market in large quantities. Influenced by China-U.S. trade frictions, the imports of corn, its substitutes and corn further processed products such as DDGS are restricted. Besides, along with the commissioning of new corn further processing projects in the last two years, the demand for homemade corn would improve obviously, and the production would be less than the demand. So the prices of new corn in 2018/19 were expected to ascend. However, there would be a periodic low of corn prices in October when new corn is available on the market in large quantities.    
 
On the one hand, new corn and long-term storage both are available on the market, and the pressure of supply is increasing. At present, new corn is available on the market of north China in large quantities, and also would be available on the market of northeast. There have been relatively great changes in habits of selling grain in recent years, and migrant workers who come home back for autumn harvest are eager to work in the cities and sell all grain one time, resulting in massive new corn on the market. And meanwhile, the trading volume of temporarily-stored corn is great in recent weeks and the time of warehousing out focuses on middle and late October, which would further increase the supply pressure of market. 
 
On the other hand, there is uncertainty about a periodic demand. Along with the strengthening of environmental examinations, the operating rate of further processing companies in north China from the end of October to early November must be influenced, which would reduce their purchase volume of corn. The influence of African swine fever still continues, which is not good for the demand for feed corn.