Can the corn market cool down soon after the new grain is on the market?

Affected by higher corn prices, many domestic feed companies have recently issued price increases notices one after another

At present, downstream enterprises are under pressure due to the high cost of raw materials, and upstream grain traders and grain farmers are also worried about high and fluctuating corn prices

It is worth noting that as the date of the new grain market is getting closer and closer, the price of corn has dropped to a certain extent

Feed companies continue to increase prices

The high and fluctuating corn prices first affected feed companies

The leading company in the feed industry, Haida Group, said in a recent investor survey that the current price trend of corn and other raw materials is not easy to judge

In the first half of this year, feed prices rose significantly

Downstream companies are also eagerly waiting for the corn market to cool down

It is worth noting that downstream companies generally report that raw material costs are under pressure

Liu Dong, a corn analyst at the Agricultural Products Division of Shanghai Steel Union, also told a reporter from China Business Daily that downstream consumption will definitely affect the demand for corn, but the pressure from the downstream demand side is transmitted slowly to the upstream raw material corn, and it usually takes a medium to long term.

Corn prices have fallen

Right now, as the date of the new grain market is getting closer and closer, the price of corn has dropped to a certain extent

Although the recent corn price is still at a high level, many factors have created conditions for the corn price to cool down

Liu Dong told a reporter from China Business Daily that there are many factors that have caused corn prices to fall recently

"In addition, downstream companies have relaxed their purchasing mentality

Is this round of price changes normal? A major grain grower in Northeast China told a reporter from China Business Daily: “The corn market has been decreasing recently.

Seasonal decline may be inevitable

Industry insiders believe that the corn market is expected to return to rationality after the listing of the new grain

A grain trader in the Northeast region told a reporter from China Business Daily: "The changes in corn prices have not greatly affected the progress of corn production and sales

At present, the mentality of market entities is the main factor that affects the purchase and sale of the corn market, and it is also a major factor that affects changes in corn prices
.
Liu Dong said that the purchase and sales progress of corn is greatly affected by the mentality of market players, such as the mentality of farmers in selling grain and the mentality of traders in purchasing
.
At present, all parties in the market have basically reached a consensus on the "fall in corn prices before the new grains are launched", which has also cooled the corn market to a certain extent
.

After the new grain is listed, the relevant subjects in the corn market may also look at prices more rationally
.
"Different from the blindly bullish mentality of all parties in the market last year, all parties in the market participate in corn purchases and sales more rationally, and market operation strategies will also be changed
.
For example, the proportion of grain traders in mid-to-long-term inventory will be significantly reduced, and downstream companies have stocking inventory cycles.
There will be some reductions, etc.

" Liu Dong said
.