Corn: Policy benefits continue to be released

Based on the current market performance, it is urgent for policy guidance to provide market guidance to enhance the confidence of various channels and trading entities in entering the market for acquisition. Otherwise, the spot market will be difficult to show significant improvement for a long time, and can only trade time for space to achieve slow release of upward pressure through long-term consumption of essential needs. But this will require corn prices to continue searching for bottom support, which will inevitably exacerbate the losses of grassroots farmers. Fortunately, the policy has paid attention to this. After the corn futures market plummeted rapidly on Thursday, China Grain Reserves Corporation announced that the company and its related enterprises will continue to increase the collection and storage scale of domestically produced corn in Northeast China and other corn producing areas in 2024, and have added the content of "actively entering the market to carry out acquisitions" compared to last year; In addition, there are rumors in the market that reserve acquisitions may relax toxin restrictions. Boosted by this positive news, the market experienced a V-shaped reversal on the day, with bears slowing down and reducing their positions before leaving. Eventually, the market turned red and closed at the lower shadow of the growth line and the bullish line.

After a low-level rebound, the market stabilized, and the price of Beigang also increased by 10-20 yuan/ton over the weekend, and has not yet fallen below the mainstream purchase price of 2000 yuan/ton. At the same time, there were several good news during the weekend -1. China Grain Reserves Jilin Branch, China Grain Reserves Storage and Transportation Company, and China Enterprise United Grain Reserve Co., Ltd. will increase the collection and storage scale of domestically produced corn in 2024; 2. It is said that the customs received a notice on Friday that all corn flour processing plants in the Comprehensive Bonded Area will be suspended in 2025, and quota management will be implemented like white sugar; 3. The standard for vomitoxin in the Heilongjiang branch of China Grain Reserves Corporation has been relaxed to within 1500, and the standard for vomitoxin in the Jilin branch of China Grain Reserves Corporation has been relaxed to within 1800. The current market needs policy guidance and boost, otherwise it will be difficult for the market to recover. In the future, we should continue to focus on the impact of policy implementation on market trends and mentality. In terms of operation, the market is currently at a low level in the far months, so it is advisable to take a light position and try to buy more.