After the winter, rain and snow in northern China are frequent, which makes the land moisture in most areas better, and the supply of corn and other crops is expected to be relaxed, which exacerbates the market trend. In the past month, domestic corn has continued to decline, and it has now fallen to a three-year low. What is the cause of corn ***
1. What is the cause of corn?
The reasons for corn *** usually involve supply and demand, production, market expectations and other aspects. In the case you mentioned, there could be a few main reasons:
1. Increase in output.
This year's corn production has increased significantly, resulting in an increase in the market. When demand is greater than demand, it tends to be hit, and the increase in production makes the market looser.
2. Low merchant inventory.
* The low willingness to stock up on grain may be because they are reluctant to hoard large quantities of corn in anticipation of the fact that corn **will**. This also increases the flexibility of the market, and traders are more willing to avoid losses caused by the rapid availability of inventory.
3. The market is bearish.
If there is a general belief among market participants that corn will be in the future, then a bearish mindset will be formed, leading investors to reduce and sell more, which will push the market
4. Linkage of production and sales areas**.
The best link between the production area and the sales area is usually close. If the *** of the production area may be transmitted to the sales area, resulting in the overall market ***
5. Downstream enterprises are not willing to purchase.
The weakening of demand by downstream enterprises may be manifested in the decline in purchasing willingness, which will have a negative impact on market demand, which in turn will affect **.
At present, the impact of this winter's rain and snow on grain is mainly in transportation, affecting the short-term food and supporting the short-term, and it has not had a significant impact on next year's food. In the short term, the market mentality is weak, and corn ** still maintains a weak operation.
In general, the combined effect of factors such as surplus, market expectations, business strategies, linkage between production areas and sales areas, and weak downstream demand may lead to a reduction in farmers' incomes, but may have a positive impact on some corn consumers and related industries.