With the Spring Festival approaching, the corn market is showing a complex situation. On the one hand, the market expects a smooth trend, but the volatility of corn ** always seems to run counter to expectations. Recently, corn has finally ushered in the decline of the first to stop, but then more controversies and questions followed. So, is the ** of corn a "return to the light", or a real market reaction?
In the past, due to various reasons, there has been a phenomenon of panic selling grain in the market. This panic selling of grain not only further depressed the price of corn, but also reduced the selling pressure in the market. This provides the basis for the corn to be raised.
We must understand that weak relativity refers to the slow consumption of enterprise inventory due to macro pressure and insufficient terminal consumption. But that doesn't mean demand disappears completely. For example, last year's sugar price drove the demand for starch sugar, which in turn boosted the demand for corn. In addition, the demand of the feed industry is still huge, especially the continued high pig inventory, which is the rigid demand for corn.
This raises the question: where did the corn go? In fact, part of the corn has entered the reserve, and the grain storage has been purchasing, and with the landing of the increased reserve, the purchase volume is gradually increasing. In addition, market demand remains an important factor supporting corn**. Although the substitutes were squeezed out of the market after ***, the gap between supply and demand of corn still exists, and the market supply and demand are still in a tight balance.
Although the current demand can still support corn**, the pressure is gradually increasing. So, will corn fall sharply again after the year? This is a complex question, and the answer is not simple. While there are many bearish voices in the market, I don't think things are that bad. **The center of gravity may weaken, but it is unlikely that there will be a sharp decline beyond expectations. As for why, we need to further analyze the future market dynamics and changes in supply and demand.
The corn market is not a "return to the light", but the result of a combination of factors. Nor can we ignore the challenges and uncertainties ahead. The corn market will still face pressure and changes in demand after the year, which will have an impact on the corn market. Therefore, we need to pay close attention to market dynamics and rationally analyze future trends in order to better grasp the opportunities and risks of the corn market.