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What is the deviation between corn starch and corn spot futures price difference?
Hello, I'm glad to answer your question:

1, the total amount of starch is limited. In recent two years, the total domestic starch output is about 23.5 million tons, which is only about 12% of corn output.

2. The quantity of starch products is limited. As a primary product of corn, starch has a very long downstream industrial chain. At present, only half of the starch is commercial starch, which means that the amount of commodities available for circulation is only 10 million tons. In recent years, starch downstream production lines such as corn starch sugar have been launched continuously. If the market develops in the direction of the United States, the proportion of starch reprocessing will expand and the commodity volume will be further compressed.

3. The deliverable quantity of commercial starch is limited. According to the field survey of Xinhu Futures 1 1, most large enterprises have relatively perfect sales systems and stable sales channels. Companies that do well have completed the "hedging" of spot links through long orders and short orders. Enterprises with high production and sales rate usually need to maintain the existing customer system and sales channels. Taking out a lot of goods for delivery will obviously conflict with the spot sales system. Due to market conditions, futures prices will seriously deviate from the spot constitution.

I hope that the answer given by Chongtianniu will be helpful to you, and hope to adopt it!