Guangfa Futures: Corn spot prices slightly rise, and the market follows the upward trend.

Grain reserves in Northeast China are running out. The high cost for traders to build inventories has strengthened their price-support sentiment, keeping prices stable while gradually rising. At North Port, prices have increased due to futures-driven momentum. In North China, spring sowing and the need for wheat harvest storage have kept sellers fairly active, resulting in wheat prices fluctuating within a narrow range.

On the demand side, deep-processing enterprises’ inventory replenishment coincides with continuously shrinking profits, so purchasing is mainly based on actual needs. Meanwhile, with feed companies continuing to incur losses and wheat substitution supplementing supply, their appetite for corn purchases is not strong; they mainly focus on digesting their own inventories.

On the policy side, on Wednesday, the weekly auction of 800k tons of wheat continues unchanged, at 800k tons, but the impact of regularized auctions on corn prices remains limited. Overall, in the short term corn demand is average, but with limited supply pressure and trader price-support support, the price center shifts upward. However, the market lacks overall driving force, so the sustainability of the rise is limited.

Monitor subsequent policy supply. (GF Futures)