The regulatory storage increase of China National Grain Reserves Corporation affects the corn market

After the freezing in Northeast China at the end of November, China National Grain Reserves Corporation (Sinograin) announced a gradual increase in regulated storage, with an increase in procurement, reflecting the policy of stabilizing prices and protecting the interests of farmers. In addition to Northeast China, Xinjiang, Gansu, Shaanxi and other places have also issued storage increase notices. In late November, China National Grain Reserves Corporation (Sinograin) launched a large-scale purchase of corn in corn producing areas to increase storage capacity. Multiple storage sites have taken action to increase storage capacity, and Sinograin's website continues to conduct bidding purchases of approximately 600000 to 700000 tons per week. Looking back at the market since October, the market has fluctuated at 2200 ± 50. Continuous corn hit the bottom and rebounded twice on September 23 and October 22, entering a weak and volatile downward trend in November, during which there were issues with grain quality in Northeast China and grassroots farmers. Under the policy of storage effect, it is expected that the space below spot prices will be limited, and short-term support for futures prices will be focused on below 2130-2150. In the medium to long term, corn prices are expected to improve, and it is expected that corn will maintain a wide range of fluctuations between 2150-2300 before the end of the first quarter. Domestic imported corn is subject to quota control, and the import of substitutes is restricted. The price difference between wheat and corn is favorable for corn, and the demand side is expected to continue to improve.