Disk situation: C2105 reported a highest of 2711, a lowest of 2680, and a closing of 2680, -0.85% from the previous trading day; trading volume 422242; positions 603070, -4727, basis +95; C5-9 month spread +26. CS2105 reported a maximum of 3290, a minimum of 3243, and a closing of 3266, -0.24% from the previous trading day; trading volume was 142787, holding positions 121864, -9268, basis +334; CS5-9 month spread +98.
News: 1. China Grain.com Jilin Branch’s corn bidding purchase results on March 18: Planned purchases of 15,000 tons, transaction volume 15,000 yuan/ton, and transaction rate 100%; 2. China Grain.com Chengdu Branch’s corn bidding sales on March 18 Result: The planned sales volume is 1265 tons, the transaction volume is 1265 yuan/ton, and the transaction rate is 100%; 3. The Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs officially issued the "Notice on Promoting the Substitution of Corn and Soy Meal", proposing: to promote corn in feed Substitution of soybean meal to promote food and grain supply to stabilize the market.
Spot market: The purchase price of new grain with 15% moisture content in Jinzhou Port is 2780-2790 yuan/ton, and the flat price is 2820-2840 yuan/ton. Starch is quoted at 3640 in Hebei; 3600 in Jilin; and 3700 in Shandong. (Unit: Yuan/Ton)
Warehouse receipts: corn warehouse receipts were reported 66,742 pieces, -2750 pieces; corn starch warehouse receipts were reported 2,935 pieces, 0 pieces.
Position analysis: The top 20 corn C2105 contract mainstream funds reported 449,912 long positions, -1642 hands, and short positions reported 439,734 hands, and -10060 hands. Corn starch CS2105 contract mainstream funds top 20 long positions reported 88,759 hands, -5395 hands, short positions reported 82951 hands, +6189 hands.
Summary: Internationally, the United States Department of Agriculture (USDA) has issued a strong export inspection report, confirming that China has purchased large amounts of corn from private exporters, supporting the rise of CBOT corn contract prices in recent months, rising import costs, and boosting domestic corn prices. Domestically, the market is still in a tightly balanced state. Traders have a strong willingness to uphold prices. Some regions directly subordinate warehouses have begun to purchase rotating grains, and the high prices have supported corn prices. However, the increasing supply of grain in production areas has suppressed spot prices. The decline and weak downstream demand restrict traders' enthusiasm for acquisition. In addition, the continuous arrival of imported grains in Hong Kong has markedly increased inventories, and the continued decline in the cost of arrivals, weak feed demand and poor transactions continue to restrict market mentality. Some traders have accelerated their shipments and reported low prices. In general, it is expected that the short-term will maintain a high level of shock and order, and pay attention to the next policy news guidance. The corn 2105 contract took part in the intraday trading.
The processing profit of the corn starch industry is relatively good, the operating rate of the industry has rebounded rapidly, the output of starch has increased, but the downstream demand has not improved, the market purchase and sales are weak, and the pressure on corporate inventory is gradually increasing. As of March 16, the total starch inventory of corn starch enterprises It reached 802,300 tons, an increase of 7.65%, which created a negative pressure on the market and caused some companies to continue to lower their starch quotations. However, corn prices are still at a high level. Under cost pressures, corn starch companies tend to maintain a high price mentality to provide support to the futures market. It is expected that corn starch will oscillate mainly with corn, and corn starch 2105 contract will take part in the intraday trading.
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