Corn supply is scarce, wheat is unique

Corn supply is scarce, wheat is unique

Market shortage of food shortage manufacturers

As time went by in the summer, feed manufacturers gradually realized the shortage of raw grain and began to reserve a certain amount of inventory in advance. According to China National Grains and Oils Information Network, as of mid-June, most feed manufacturers have more than one month of corn stocks and more than half a month of poultry stocks. The recent corn surge has clearly explained this problem. Many regional traders are busy buying wheat, and the supply of corn has been greatly reduced. The starch companies have to increase the purchase price, and the feed enterprises have to raise their prices. As a result, the cost pressure of feed manufacturers has surged, and many feed manufacturers recently said that even if the purchase price is raised sharply, it is still difficult to purchase corn. Before the official start of the national temporary auction, in order to alleviate the cost pressure, many feed manufacturers began to look into the alternatives.

Amazing replacement for corn gains

This year, in order to ensure the consumption of huge domestic corn stocks, the import of corn substitutes has been greatly restricted. According to the China National Grains and Oils Information Network, since the Spring Festival, traders imported barley and sorghum, and imported barley and sorghum domestically. The limited supply, coupled with the recent surge in corn prices, the price of imported substitutes has risen, and the price/performance ratio is limited. Therefore, the recent favor of feed manufacturers is the domestic new season wheat.

During the wheat harvest period, strong convective weather occurred in most of the main producing areas in China, which led to different degrees of decline in wheat quality and yield in some areas. Water, bud wheat and scab often occurred, although the acquisition of new season wheat caused a great deal. The impact, but at the same time also increased the supply of domestic feed wheat. For example, in recent days, many Shandong manufacturers have purchased the price of feed wheat in Anhui area at 0.9 yuan/kg. Compared with the current local corn purchase price, the advantage of feed wheat is obvious. Manufacturers are more willing to purchase wheat, and nowadays in terms of alternatives, wheat is considered to be “a favorite”.

How to get to the auction in the future

According to the current domestic market situation, the basic stocks already provided by feed manufacturers, together with the purchase of a certain amount of substitutes such as wheat, barley and sorghum, can guarantee the production needs within a certain period of time. In terms of post-purchasing plans, many manufacturers expressed their expectation that the National Reserve will auction the 13-14 corn to compensate for the blank period before the new grain enters the market. If the temporary storage auction can be used in this node, on the one hand, it can stabilize the domestic corn price, ensure that the manufacturer has food available in the future, and on the other hand, it can restrain the demand for imported substitutes. This year, the lower corn price can improve the auction for manufacturers. The recognition of corn. On the other hand, if the temporary storage auction is delayed, the price of corn will continue this market and continue to rise sharply.