Market Analysis - Monthly Report - July, 2020 - Xylitol

Overview

Domestic corn prices are strong and accompanied by an upward trend, single downstream demand is not warm, the price is difficult to rise.

Analysis of domestic situation

In the fourth week of July, the weather improved in the growth stage of American corn, and the negative effect of high-yield expectation coexisted with the beneficial effect of China's expansion of imports. CBOT corn futures price continued to fall under the influence of bad weather. At present, the US corn futures price fell to the low range of 320-330 cents before the area report. In the 9th week, 3974200 tons of temporary storage corn were sold, which continued the characteristics of high turnover and high premium. The high price of auction continued the bullish sentiment of traders, and helped to maintain high market expectations in production areas and ports. However, it should be noted that after entering July, the first two rounds of temporary storage corn delivery period is approaching. In the case of still profitable, the outflow of temporary storage grain has increased in the near future, and the grain quantity of deep processing trade has increased, and the phased supply of corn market tends to be enlarged in August. Last week, corn increased its position in January and rose by more than 2% in September. In the night trading session, corn contracts in the near and far months continued to rise, and bullish sentiment continued to spread. Up to now, the auction has lasted for 9 weeks, the transaction is hot, the premium is constantly high, and the cost factor provides support for the corn market. At present, the corn futures prices are soaring, and the futures prices of various agricultural products are linked up, and the price range of related commodities is gradually rising. On the whole, the high premium of corn and starch Market, the expansion of imports, the auction of old rice and other short-term factors coexist, short-term corn period, the current market continued strong performance.Current domestic manufacturers offer:

Summary and Forecast

According to the fundamental situation of market supply and demand, it is believed that the logic of the bull market in the starch market is transformed from the supply side to the demand side. The negative impact of the demand-side epidemic on the economy and consumption cannot be ignored. Before proceeding, trade with caution. In summary, the overall domestic food grade xylitol market is still weaker than the market price, and downstream sales are difficult. The downstream customers purchase because of the epidemic and the market transactions are generally. It is expected that the food grade xylitol market will remain low in the short term.