The auction and rotation volume of policy grain in September significantly increased, and the transaction rate was unsatisfactory

In September 2024, new corn was sporadically launched in the main production areas of China, and there was still a certain amount of aged grain inventory for sale. Traders were more willing to sell, and coupled with the auctions of China National Grain Reserves Corporation and imported corn, the market had sufficient effective supply, but demand was difficult to increase. Grain consuming enterprises showed a clear wait-and-see attitude and maintained a strategy of using and harvesting as needed. Under the pressure of temporary volume increase, prices significantly declined, and the national average spot price fell by 6.02% month on month.

The number of domestic reserve corn auctions in September 2024 has significantly increased compared to the previous month, while the transaction rate has significantly decreased. However, the number of corn bidding purchases has significantly increased compared to the previous month. According to statistics, from September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 81 bidding sales transactions for reserve corn, with a planned sales quantity of 2199370 tons and an actual transaction quantity of 515555 tons, with a transaction rate of 23.44%.

From September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 56 corn bidding procurement transactions, with a planned purchase quantity of 896317 tons and an actual transaction quantity of 778211 tons, with a transaction rate of 86.82%.

From September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 35 two-way bidding transactions for corn purchase and sale, with a planned transaction quantity of 704003 tons and an actual transaction quantity of 405178 tons, resulting in a transaction rate of 57.55%.

From September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 0 one-time reserve corn sales, with a planned sales quantity of 0 tons and an actual transaction quantity of 0 tons, resulting in a transaction rate of 0%.

From September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 0 one-time reserve corn purchases, with a planned purchase quantity of 0 tons and an actual transaction quantity of 0 tons, resulting in a transaction rate of 0%.

From September 1st to September 30th, 2024, China Grain Reserves Network conducted a total of 5 bidding sales transactions for imported corn, with a planned sales quantity of 1237080 tons and an actual transaction quantity of 228405 tons, with a transaction rate of 18.46%.

As the domestic new season corn market approaches, facing the pressure of overdue storage, policy reserves of corn began to be released in large quantities in September, with weekly investment exceeding 1 million tons, increasing the supply pressure on the corn market. However, during the week of September 23rd to 30th, the purchase quantity of corn for reserve grain was nearly 1 million tons, significantly higher than the levels of previous weeks. Due to the late implementation of the storage policy last year, higher acquisition prices for enterprises, and significant losses for deep processing and traders, the storage policy may be advanced this year. Rumors suggest that regulatory reserves will begin in October, boosting market sentiment and providing support for the spot market.