Newsletter summary
The spot price of corn continues to riseJackpotresultyesterdayReduced supply drives bullish sentiment in the marketJackpotresultyesterdayThe futures market is also showing a positive trend. There is a shortage of surplus grain in North China, and traders are more reluctant to sell. Corn production and imports at home and abroad are still the key factors affecting prices.
Text of news flash
Corn spot market ushered in a new round of rally in the past week, corn spot prices continued to rebound, the increase expanded, the market bullish sentiment showed.
The reduction of surplus grain pushed the progress of grain sales to be the same as last year, the supply of grain sources in the market tightened, some enterprises increased their willingness to buy, and prices continued to rise. Spring sowing and spring planting were carried out in an orderly manner, and the rise in futures and the purchase of stored grain supported the rise in corn prices, but the volume in Shandong led to a slight fall in prices over the weekend.
The surplus corn grain in Northeast China has bottomed out, the circulation at the grass-roots level has decreased, the asking price of farmers has been firm, and the purchasing enthusiasm of traders has increased. Direct treasury continued to buy, competitive procurement is active, Matsuhara Cargill and fuel ethanol raised purchase prices, port inventory declined, prices increased.
Corn prices in North China rose first and then fell, and on the whole, they still increased slightly. The surplus grain decreases, the traders hesitate to sell, the bullish mood increases, and the price rises. The hype of reducing the production of new wheat has made the price stop falling and rebounded, which plays a role in promoting the price of corn.
Corn prices in North China continued to fall in April, but market sentiment improved significantly after the last ten days, with higher bottoming demand and higher prices. Corn prices are expected to continue to rise in the future, with surplus grain bottoming out, imports decreasing and demand continuing to rise.
Us corn contract fell 3% last week.Jackpotresultyesterday.36%, but the domestic corn plate continued to rise, with the 2407 contract up 0.JackpotresultyesterdayThe .24% focus 2409 contract rose 0.49%, breaking through the 2500 mark and setting a new high for the year.
China's corn imports increased year on year, with imports of 9.08 million tons from January to April 2024, an increase of 6.5 percent over the same period last year, exceeding the import quota of 7.2 million tons for five consecutive years. Imports rose 17.6% in April from a year earlier, a month-on-month decline. Corn imports this year are expected to drop by more than 4 million tons compared with last year.
Brazilian corn production is expected to be 111.6 million tons, down 15.4 per cent from a year earlier. Brazilian corn exports rose sharply in the first 10 days of May compared with the same period last year. Ukraine's grain exports fell year-on-year, and more grain was shipped through the port of Odessa. The United States Department of Agriculture cut its estimates for South American corn production, resulting in a net increase in U.S. corn export sales, but a decline in shipments.
After the Spring Festival, the corn market is affected by policy acquisitions, and the regionalization is obvious. Corn prices fell in April, but changed differently in different regions. Since May, the surplus grain has decreased, the amount of corn has been low, prices have rebounded, and bullish sentiment in the futures market has risen.
In the futures market, corn 2407 contracts rose slightly, while 2409 contracts increased, breaking through 2500 in intraday trading. The market expects corn prices to continue to rise, surplus grain to decrease, corn imports to decrease, wheat prices to rise, and market sentiment to change.
To sum up, the corn market supply is tight, demand continues to consume, the market bullish mentality increases, there is still the possibility of a rebound and rise in the future. Investors are advised to pay attention to the support situation and buy bargain-hunting.
