China Grain Reserves Corporation issues document to increase domestic corn storage, but the positive impact still needs to be monitored for subsequent policy implementation

At noon today, China Grain Reserves Corporation announced that it will increase the scale of domestic corn collection and storage in major corn producing areas such as Northeast China. The market opened in the afternoon, and the consecutive rise in corn prices has swallowed up the recent decline, but has not yet broken through the previous fluctuation range.

Every year during the grassroots grain sales stage, the government has policies to increase storage, but today is a rare public announcement to increase storage. In the stage where farmers are losing money in grain sales, the willingness of this policy to protect their interests and boost corn market prices is very obvious. The market expectation for policy storage prices is mainly to follow the market, so the increase in storage quantity has become the focus of market attention, which in turn determines the bullish range of market entities on prices. However, because the information does not mention the specific amount of storage increase, it has also caused market concerns. In the afternoon, the main focus was on reducing holdings, and both long and short sides are worried about the specific implementation of the policy.

Since January, many reserve warehouses in various regions have started to acquire corn, but due to the relatively small number of acquisitions, they have not actually attracted multiple entities such as trade links to enter the market for purchases. The limited price support has not stopped the trend of corn prices breaking through the annual low point. This policy has publicly released information on increasing storage, and the positive impact is obvious. However, the influence of the positive impact still needs to be focused on the willingness of multiple entities such as trade links to enter the market and the specific implementation of the policy.