First of all, the rising demand has driven up the price of corn, and the consumption of corn in China is mainly feed. Since the scale of pig breeding resumed last year, the demand for corn has continued to rise. According to relevant statistics, at present, China's pig production capacity has returned to about 90% of the normal level, which has greatly stimulated the price of corn. At the end of 20 19, our local corn price is only 0.85 yuan, and the better quality corn will be sold to 0.9 yuan for a catty. And a year later, the price of corn has generally risen above 1.2 yuan. The core stimulus here is the rising demand, which leads to the upward market price.
Secondly, after years of destocking, the price of corn has been raised among the three staple foods, and the price of corn has been relatively low. For a long time, China's corn stocks are large, so it has been destocking for many years. Last year, the auction of temporary corn storage in the main producing areas began to clean up the market inventory. At present, on the whole, the demand for corn has increased greatly, prompting the acquisition enterprises to start raising prices. In particular, after continuous optimization and adjustment, the operating rate of grain enterprises has been greatly improved, which has also brought some stimulation to corn.
Thirdly, the international corn futures market drives the spot market to rise. Affected by the epidemic, last year, there were food shortages in many parts of the world, and the food crisis became a hot topic in the world. As a result, capital continues to enter the grain market to speculate on food prices. Under the constant speculation of funds, corn futures prices continue to rise. The rise in futures prices has also greatly promoted the price of the spot market. Now the price of corn continues to rise, which is not unrelated to capital speculation.
Finally, last year, affected by the disaster, the output declined to some extent. Last year, the weather changed greatly, especially in summer and autumn, and floods occurred in many parts of the country, which led to the lodging of corn and the decline of yield. In addition, some farmers have a strong reluctance to sell corn, which makes the whole market price keep rising. Of course, on the whole, our grain output is still in a bumper harvest market, but the wave-band increase in corn prices has greatly stimulated the enthusiasm of farmers.
If corn prices continue to rise this year, it may prompt farmers to plant more corn. However, everyone should be psychologically prepared, because farmers often step on the wrong time when they are engaged in crop planting. In other words, when farmers plant on a large scale, food prices will fall, and when food prices rise, farmers' planting scale is relatively small. Therefore, the most important thing is to grasp the changes in the market in time and try to sell at a high point to obtain the maximum profit. Do you think the corn market will continue to rise now? What do you think of this? Please leave a message below to express your opinion.