Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - The core driving force in the corn market lies in the tight balance between supply and demand in the producing areas and cost support, with a strong market sentiment. However, after the rapid price increase, the acceptance of downstream buyers has started to diverge. Policy has released clear regulatory signals to stabilize the market, which will form a substantial substitution and price suppression for the feed demand of corn. The actual transaction and arrival of substitute grains such as government - stored wheat will be the key variables affecting the upward space and rhythm of corn prices. In the short term, the strong pattern of corn prices remains unchanged, but the upward trend has begun to slow down. Policy regulatory effects and external macro - risks will be the key variables affecting the subsequent trend of corn prices [8][9] Summary by Relevant Catalog Current Market Situation - This week, the national corn price continued to run strongly. In the Northeast and North China producing areas, due to the reduction of remaining grain at the grass - roots level, traders' bullish sentiment and reluctance to sell, and deep - processing enterprises' price - raising purchases, the prices continued to rise. The prices in the sales areas were also adjusted upwards due to cost push. The prices of corn by - products were boosted by the strong soybean meal price and supported by the raw material corn cost, showing an overall upward trend [5] Supply - Demand Analysis in Producing Areas - The current domestic corn prices in producing areas are generally strong with regional differentiation. The core logic is the game between the tightening of marketable grain sources on the supply side and the active procurement of deep - processing enterprises on the demand side. In the Northeast, the price remains strong, with no obvious supply pressure. Some traders sell goods according to the market, but the overall sentiment is bullish. Deep - processing enterprises continue to raise the purchase price to attract grain sources due to low inventory, and are also driven by the rising futures price, with strong demand support. As of March 12, the dry - basis listed price of new - season grain in deep - processing enterprises in Heilongjiang and Jilin has reached 2175 - 2270 yuan/ton, with a week - on - week increase of 23 - 60 yuan/ton. In North China, the price also continued to be strong. As the remaining grain at the grass - roots level gradually decreased, although farmers' willingness to sell grain has recovered, the bullish expectation is strong and the reluctance to sell sentiment still exists. Traders generally hold grain and wait for price increases, with a low willingness to ship, resulting in limited effective marketable grain sources. Local deep - processing enterprises have low inventory and high purchasing enthusiasm, constantly raising the purchase price, but the overall volume effect is average. The number of trucks arriving at the enterprise gate has increased significantly week - on - week but is still insufficient year - on - year. This tight supply - demand balance, combined with high raw material costs, promotes the upward price of corn by - products. Since the price increase of corn by - products exceeds that of raw materials, the production profit of deep - processing enterprises has been repaired, further strengthening their willingness to support the price and purchase, forming a positive cost - driven cycle [6] Policy Regulation - The policy has started to release regulatory signals, aiming to relieve the tension in the corn market by increasing the supply of substitute grains. On the one hand, in response to the continuous strengthening of corn and other grain prices after the Spring Festival, the National Grain Trading Center announced that starting from March 18, the auction volume of government - stored wheat will be significantly increased from 300,000 tons to 500,000 tons, and the restriction that only flour - processing enterprises can participate in the bidding has been cancelled. This move is to stabilize the corn market price by increasing the supply of policy - based grain sources and directly opening the feed substitution channel. In the March 11 auction, government - stored wheat achieved 100% transaction and was generally sold at a premium. For example, the average transaction price of 2017 - produced wheat in Henan was 2403 yuan/ton, significantly lower than the current ex - factory price of nearly 2500 yuan/ton of pig - feed corn in Henan. In the context of high soybean meal prices, the economic feasibility of wheat as a feed substitute has emerged, which will form a substantial diversion and price suppression for the feed demand of corn. On the other hand, the scale of the targeted invitation - bidding auction of imported corn, which was previously a market supplement, has shown a downward trend. Since 2026, it has gradually decreased from twice a week, about 200,000 tons each time, to once a week, about 150,000 tons each time, indicating that the inventory release of policy - based imported corn is weakening. Overall, the auction market is reducing the direct release of corn while significantly increasing and opening the access of more price - competitive wheat to the feed field to indirectly relieve the supply - tight situation in the corn market. This not only provides a more cost - effective alternative for downstream feed enterprises but also sends a signal of policy - supported supply and price stability to the market. The market's expectation of the possible start of the auction of old rice inventory has increased. The subsequent auction transaction dynamics have become the key variable affecting the corn price trend [7]