Focus: Temporarily-Stored Corn Was Officially Auctioned on May 23rd, and Corn Market Prices Would Show the Increasing Trend

By CnAgri 2019-05-23 10:23:05 Print Tel:861064402118-822 Email:

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According to the news released by China National Grain and Oils Information Center on May 14th, the auction would start on May 23rd with the first weekly auction volume of 4 million MT. In the northeast and Inner Mongolia, the upset prices of grain produced in 2014 and 2015 would range at 1,550-1,650 RMB/MT and 1,600-1,700 RMB/MT. With the addition of warehouse-out and transportation costs, the prices would be 200 RMB/MT higher than last year.    
Sine May 10th, China-U.S. trade war has heated up again, and both parties have raised the taxes, which means the imports of corn and cereals from the U.S. would suspend in a period of time. Influenced by that news, corn future prices begun to ascend greatly and spot market prices also showed the increasing trend. The starting of temporarily-stored corn auction can increase the supply of corn, stabilize market expectations and avoid exorbitant prices.
Meanwhile, temporarily-stored corn auction pricing brings support for corn market prices. According to the speculation on upset prices of corn (second-class) in Jilin, theoretical prices arrival at the ports range at 1,850-1,900 RMB/MT, almost the same as the current prices at the ports. Considering that temporarily-stored corn has been stored for a long time, it would bring certain premiums for new-season corn prices.     
Generally speaking, at the beginning of auctioning temporarily-stored corn, the transactions are relatively active, with a premium. So, the auction of temporarily-stored corn would push up corn spot prices in the domestic. 
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