Starch fell 0.15% within the day, institutions say corn and starch: futures prices fluctuate and fall back

The performance of corn spot is differentiated. Most of the production areas in North China have declined, while the production areas in Northeast China have adjusted steadily. The ports in the north have risen steadily, while those in the south have declined steadily; Corn futures prices fluctuated and fell, with all contracts closing slightly lower. For corn, the recent performance of futures prices is relatively stronger than spot prices, indicating that the market tends to believe that the current weakness in spot prices is more due to the passive sales of grain by farmers caused by temperature and rainfall in the production area. This means that the improvement of weather in the later stage is conducive to the storage of new corn, and the decline in spot corn prices is limited. In this situation, we will continue to maintain a cautious bullish view based on the annual production and demand gap expectation, and wait for the release of new pressure in the short term. We will focus on factors such as import auctions, national reserves, and North China wheat, and recommend investors to hold long positions in the early stage.

Starch spot prices are mostly stable, with some regions lowering their quotes by 10 yuan/ton. Starch futures prices have followed the fluctuations of corn and fallen, and their performance is relatively weaker than corn, which has slightly narrowed the price difference between starch and corn. For starch, the price difference between starch and corn has slightly narrowed recently, mainly due to the short-term bearish trend in industry supply and demand and by-products, with industry supply and demand continuing to rebound due to industry inventory; The by-products have rebounded recently, driven by protein meal, which has further improved the production profit of spot goods; The cost of raw materials has been supported by the widening price difference of corn in the North China Northeast production areas. Considering the difficulty of significant increases in by-products and the high starch basis difference, we tend to limit the space for narrowing the starch corn price difference. In this situation, based on the judgment of raw material corn, we maintain a cautious bullish view and recommend that unilateral investors hold long positions, while arbitrage investors continue to hold the starch corn price difference for further arbitrage.