30
2021
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07
This year's corn storage policy may be announced in advance
In the corn market this year, waves of negative rumors about the temporary reserve policy have hit the fragile spiritual barriers of industry personnel.
In the corn market this year, waves of negative rumors about the temporary reserve policy have hit the fragile spiritual barriers of industry personnel. For a time, the market was full of bearish atmosphere, industry confidence was suppressed, and practitioners were panicked. The purchase price of temporary reserves has dropped sharply, and the planters are the most affected. In the current high planting costs, coupled with the expected reduction in production due to drought, growers’ income will drop significantly, or even lose money; all grain-using companies are expected to sharply reduce the price of temporary storage, and their purchasing enthusiasm has declined, and their eyes are more focused on the launch of new grains. At this stage, in the current weak consumption, the impact on the corn market can be said to have worsened the impact; and reflected in the futures market, the far-month contract has been revised down sharply, and it has been consolidating in the low range for a long time.
To ensure confidence, many bad rumors about temporary storage policies have flooded the corn market recently, and the far-month futures contracts have been severely suppressed. Grassroots growers and downstream grain-consuming enterprises have also been affected by this, and different psychological expectations have emerged. On the whole, the corn industry is similar to the stock market and has entered a strong bearish atmosphere. The normal development of the industry has been seriously distorted by market rumors. The specific implementation of the temporary reserve policy has drawn the hearts of all practitioners in the corn market. The author believes that at this moment, in the absence of confidence in the entire industry, food policy appears to be particularly critical. Promulgating favorable policies in advance is conducive to stabilizing the grain market, stabilizing the confidence of practitioners in the grain industry, and firmly grasping the "rice bowl" in their hands.
To ensure income, judging from the current situation, in the implementation of the temporary storage policy, farmers have obtained relatively good benefits from the increase in grain production and the rise in grain prices, but this has also increased the cost of planting in grain production, the most important of which is Land rent costs, labor costs, and other costs are also gradually increasing. The increase in planting costs has narrowed the space for farmers to bear the price drop. If other factors occur, this space will be even smaller. This year is an example. Droughts that have not been seen in many years have appeared in most of the Northeast producing areas this year. Early occurrence, long duration, and strong impact are the main characteristics of this year’s drought. The current negative rumors of "substantial reduction in the price of temporary storage" have been known to many farmers. The early introduction of favorable temporary storage policies will help to give farmers "reassurance" before the launch of new grains, and will not be affected by bad news and policies. It was too late and caused losses to some farmers.
To ensure the quality of grain, the acquisition of temporary corn storage has been implemented late. Although the policies for individual years were introduced earlier, the time for the final acquisition was basically delayed until December. Corn in Northeast China began to go on the market one after another in October. Due to the large grain planting area, high yield, and difficult storage in Northeast China, the risk of bad grain is relatively high before the acquisition of temporary storage is carried out, and the mildew rate has gradually increased with the passage of time. After the start of the temporary storage acquisition, the overall grain quality has declined significantly. This is also the reason why a large number of bad grains have been temporarily stored in the warehouse in recent years. Initiating temporary storage purchases in advance will not only allow farmers to sell good grain at a good price, but also provide the country with more high-quality grain sources. Therefore, this year's temporary reserve policy may not only be announced in advance, but the implementation of the acquisition may also be launched in advance.
Global Expert in Corn Deep Processing Products
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