Three key factors affecting the price of corn market in the future

[ China Agricultural Machinery Industry News ] Recently, there have been market rumors that the large-scale one-time storage and storage in the northeast region will boost the price of the northeast corn market. Although there is no official document, it is understood that Heilongjiang Province has already partially The grain warehouse began to acquire, but the quality requirements were very strict, and the corn of the general farmers was difficult to access.

Three key factors affecting the price of corn market in the future

a look at the policy

Recently, there have been market rumors that the large-scale one-time storage and storage in the northeast region will boost the price of the northeast corn market. Although there is no official document, according to this website, some prefecture-level grain depots in Heilongjiang Province have begun to acquire. 30% of the second-class corn purchase price of 0.48-0.52 yuan / kg, some traders have signed a contract with the grain depot, the national standard second-class grain corn storage price of 1320-1350 yuan / ton, but the quality requirements are very strict Generally, the corn of ordinary farmers is difficult to store. At the same time, from the recent supply-side reforms in the country, in order to ensure the farmers' planting interests, the possibility of the state launching one-time storage and storage is also a high-probability event, but it depends on the size of the acquisition and whether it will appropriately relax the storage standards. Therefore, the purchase amount and acquisition standard of the National Reserve in the Northeast will become the main factor affecting the market price, or it will become the main factor supporting the price in the future.

Second look at the demand

Fuel ethanol, a word that sounds familiar and unfamiliar, may become an important outlet for China's corn “destocking” in 2017 and up to the next few years. Maize processing accounts for an important part of corn consumption, including starch (55%-60% of the corn used for deep processing), alcohol (including fuel ethanol, 30%), and MSG (lysine, etc., 10%). Previously, the National Energy Administration announced that the 13th Five-Year Plan for Biomass Energy Development proposes that by 2020, domestic fuel ethanol will reach 6 million tons of production capacity.

Three to see the freight

After the speed reduction of high-speed corn crossings in Heilongjiang and Jilin provinces, Liaoning Province also reported that it may continue to follow the policy guidance and implement the corn green channel policy. The implementation of the “Green Passage” policy has reduced the cost of outward transportation of corn in Northeast China. The corn in the three provinces of Northeast China is mainly exported to Liaoning Port, and then exported to North China and South China by sea. The “Green Passage” policy is implemented to reduce transportation costs. Northeastern corn has a greater role in promoting market share, which is bound to accelerate the sales of corn in northeastern Northeast China. This has alleviated the problem of “selling grain” in Northeast China, and on the other hand, it has supported the price of corn in the northeast.


(Original title: Look at these three factors after the corn can rise in the next year!)