2840 yuan!The country 5 days to put 889,100 tons of wheat, corn prices are expected to break 1.5 yuan

2022-05-15 0 By

Is corn expected to break 1.5 yuan after putting 889,100 tons of reserve wheat in 7 days?In January 2022, the central wheat reserve and the local wheat reserve in some provinces and cities such as Jiangsu and Shandong began to jump the gun and enter the market continuously.From January 17 to 21, 889,100 tons of wheat reserves were released in five days.As of January 22, the central wheat reserve alone has been nearly 1.62 million tons.After this year 2, March, it is in previous years place various grain reserves put intensive period.There is substitutability between wheat and corn, and price correlation is strong. If reserve wheat is put in so much, is corn expected to break 1.5 yuan after the New Year?In fact, the amount of reserve wheat that’s being put out there, it’s not really a variable in the corn market. You know, the price of a product is set for a number of reasons, cost, demand, industry standards, and demand is the most important factor.These factors can be boiled down to the “hard power and soft power” of prices.But in addition to these, there are some factors that will affect the price changes, among which we have to mention “price constraints”.Business people, should be quite hate peer price, they only need to lower the price a little bit to increase sales.Today we won’t argue about whether this behavior is right or wrong, only that it can be seen as the “smart power” of prices.Since there are substitutions between wheat and corn, naturally there are also such relations and problems.However, at present, the average transaction price of reserved wheat is between RMB 2,870 and 2,900 yuan. At this price, the price of corn is basically the same and there is no “price constraint”, which is conducive to promoting the structural balance and value regression between the two major varieties.That is to say, whether the corn price can break 1.5 yuan depends on the corn market itself, and according to the current fundamentals of supply and demand in the corn market, the possibility of high price is very high, but breaking 1.5 yuan will not be a normal situation.However, at a press conference on agricultural and rural economic performance on January 20, relevant officials have mentioned that subsidies for corn and soybean producers will continue to be improved this year. From the policy tone, farmers, large growers and cooperatives will enjoy more policy dividends.