What Factors Will Affect Corn Prices In This Year?

- Mar 05, 2020-

Will corn have another chance to rise in the future? This year is a special year, mainly affected by the epidemic of new coronavirus infection pneumonia, on the one hand from the domestic epidemic, on the other hand from the international epidemic and international trade friction, and the rapid development of the domestic breeding industry Will cause corn prices to rise this year. These three reasons are inevitable and indisputable facts.

First, the impact of domestic new crown virus epidemic on corn prices. 

Forty-two days have passed since the closure of Wuhan from January 23 this year to March 5. This year, rural areas will gradually resume agricultural production, and road closures will be gradually lifted. During the closed period in rural areas, road traffic was not smooth and was extremely restricted. Feed processing enterprises, sales channels, etc. were shut down and shut down, causing corn and feed sales to be affected and stopped for a time. After the epidemic situation, the corn and feed sales suddenly increased sharply, which will inevitably cause the supply of corn and feed to fall short of demand in a short period of time, making the supply of corn and feed significantly less than the market demand. In the short term, the corn market will be affected by farmers Due to the huge pressure brought about, there will be a large gap in supply, an imbalance between supply and demand, and a contradiction between supply and demand. Corn prices and feed prices will increase significantly. As the corn processing and feed enterprises resume work and production, the market price of corn and feed gradually returns to normal.

Second, the reasons for the international new crown virus epidemic and trade friction. 

This domestic and international epidemic situation has a very large impact on the market price of corn, which caused a pause in China's imported corn, and corn imports fell to zero for a while. In this way, after the domestic corn market is fully restored to a normal state, there must be a serious shortage of corn supply, a gap caused by corn supply, no imported corn to fill the gap, and a balanced corn market will inevitably increase the distance between supply and demand. The supply-demand relationship is seriously imbalanced, the contradiction between supply and demand is more prominent, and corn prices are bound to rise. This phenomenon is an unavoidable problem at this stage before the new corn goes on the market this year. Judging from the current international epidemic situation, international causes will be a problem that cannot be solved for a long time.

Third, this year is the beginning of vigorously developing the breeding industry. 

This year is an established year for the development of the aquaculture industry. It is an inevitable cause for the needs of many parties. The lagging development of the aquaculture industry has already affected the development of the national economy and the daily life of consumers, and has become a major underdevelopment issue in society. After the epidemic, livestock breeding will develop rapidly in various places, and the demand for feed will increase significantly. Due to the impact of the international epidemic, the recovery of imported corn has been slow to be achieved. This year, new corn has not been listed on the market and is not feasible at all. Ways to fill the scarcity of the corn market. With the gradual expansion and deepening of the aquaculture industry, the demand for corn and feed has gradually increased, and the market demand for corn has become more and more. After the epidemic, the corn market is facing a major inevitable market that cannot be surpassed. problem. Therefore, this year's increase in corn prices is inevitable and unavoidable. It is undoubtedly great news for corn planting.

In short, this year is a special year. The corn market will be affected not only by the domestic epidemic situation and the needs of the breeding industry, but also by the international epidemic of new coronavirus infection and the impact of international trade frictions. The corn market price will be very large. Changes, the rise in corn prices is unquestionable, an unavoidable problem that cannot be solved, and is the greatest period for the majority of rural corn farmers to vigorously develop corn planting.