Strong spot market structure, limit corn price adjustment space

External Market: On October 29, the December corn closed up 3 cents to close at 582 cents, supported by the supportive supply outlook and a strong spillover of wheat futures. The market waits for the monthly supply and demand report to provide directions for future prices. Among them, market sentiment points to the United States Department of Agriculture will adjust the corn yield and production expectations, but traders expressed concern about the expected decline in corn. Traders said that the position adjustment at the end of the month helped to boost prices, and that wheat prices also supported prices for most of the day. Before the last large-scale harvest of the US corn, the pressure of hedging increased the price increase. Speculative funds are estimated to buy 6,000 corn contracts.

On Friday, the domestic corn price continued to decline due to the fall in peripheral commodities. Corn's May contract was lightened by about 14,000. The position held in September was relatively stable. The withdrawal of funds in the short-term commodity market aggravated the market volatility. The fundamentals of corn remain strong, and the prices of corn deep processing and feed consumption companies remain high. The spotlight on the short-term corn spot market still focuses on the price increase opportunities brought by the supply and demand gap. In the middle of the week, the price of high quality corn in Guangdong ports has risen to 2,180 yuan/ton, and the highest spot price has reached 2,200 yuan/ton. Farmers in the producing areas are reluctant to sell their goods with a strong mentality, and the period for selling grain is postponed. After the listing of the new grain, the market expected the corn purchase price is still expected to continue to rise. Futures operations, the recent adjustment of the market prompted by the bargain buying more than one can continue to hold, corn price mid-term bullish ideas remain unchanged, far-month contract adjustment can still be a small number of layout of the center line more than a single, September contract short-term support gapping gap 2230 .