Newsletter summary
Short-term weak shock in corn marketTripleplaydrawpokerThe spot price is expected to strengthen in the medium and long term, affected by the reduction of surplus grain from producing areas and the rising prices of traders. The starch industry rebounded in the short term due to the reduction of raw material costs, but the downstream consumption was weak, the long-term inventory pressure increased, and the risk of price decline increased.
Text of news flash
[the corn market is weak and volatile in the short term, and the price-raising mentality of traders in the medium and long term is strong]
Recently, there has been no significant fundamental change in the corn market, downstream procurement activities continue to be cautious, port inventories continue to rise, and spot prices show a volatile downward trend. The market predicts that in the short term, the market will maintain a weak and volatile pattern. However, from a long-term point of view, with the gradual reduction of surplus grain from producing areas and the transfer of food sources from farmers to traders, the attitude of traders is becoming more and more firm, resulting in the upside-down of trade from origin to port.
Nonetheless, industrial inventories have fallen to historically low levels, and downstream replenishment could boost spot prices and repair trade profits if future imports are disrupted. Investors need to pay close attention to the import situation and its impact on the corn market.
The short-term profits of the starch industry rebounded and the pressure on long-term inventory increased.
In the starch industry, the reduction of raw material cost is promoted.TripleplaydrawpokerWith the rebound of industrial profits, the start-up rate can be maintained at a high level. However, downstream consumer demand is relatively weak, and companies are generally reluctant to build inventory, preferring to adopt a buy-as-you-go strategy. In the context of the imbalance between supply and demand, spot prices are expected to continue to show a weak shock pattern.
In the long run, with the increasing inventory pressure, although the industry begins to lose money, downtime does not occur immediately, but supply may increase further. If consumption fails to boost during the peak season, the increase in inventory pressure in the future may cause prices to fall further. Therefore, investors should pay close attention to the future changes in consumption and its impact on the trend of the starch market.
