Today ( Sept. 26th), the market for grains in China is shown as follows:
Corn: Today domestic corn prices go down in fluctuation. The procurement price in Shandong further processing companies prevails at 1,770-1,900 yuan/tonne, mostly down 10-50 from yesterday, and the price is 1,760-1,824 in Henan, down 10-20 from yesterday; in Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn is 1,770-1,800 yuan/tonne (volume weight 700) and 1,830 yuan/tonne for volume weight over 720, both unchanged from yesterday, and 1,770-1,800 for old corns, unchanged from last Friday, and 1,460 yuan/tonne for 2018 new corn with 30% moisture and 1,800-1,820 for those with 15% moisture, both remaining unchanged from yesterday. In Bayuqan port, Liaoning, 2018 new corn is priced at 1,800 yuan/tonne, and old corn at 1,740-1,750 yuan/tonne, both holding the line of yesterday; in Shekou port, Guangdong, price for second-class old corn is 1,920-1,940 yuan/tonne, up 10 yuan/tonne from yesterday. New corn sees a growing amount in harvest and marketing in North China and Huang Huai area. Despite such seasonal oversupply, downstream companies are inactive in purchasing, and most further processing companies take a hand-to-mouth purchasing tactic under the crippled feed consumption by ASF. Under such a balance of demand and supply, new corn price is forced to trend down. However, old corn price is still supported by the following factors. For one thing, new corn in Northeastern China just shows up in small amount. For another, auctions of temporary reserved corn have cost support at the bottom, and traders are still inclined to support the price in view of the rigid demand for high-quality old corn from distribution areas. Later focus shall be put on the weather in main planting area, new corn marketing and deals clinched on temporary reserved corn auctions.
Sorghum: Prices for imported sorghum at ports keep firm (US sorghum: Nantong offers 2,080-2,010 yuan/tonne; Shanghai 2,120-2,130; Guangdong 2030-2,050. Australian sorghum: Tianjin offers 2,310 for raw sorghum and 2,400-2,410 for dried sorghum; Shanghai 2,400; Qingdao 2,400 yuan/tonne for raw sorghum, and 2,500 yuan/tonne for dried sorghum. Domestic sorghum: Changchun in Jilin 2,360; Daqing in Heilongjiang offer 2,400; Chifeng in Inner Mongolia 1,900-1,940 yuan/tonne for new and raw sorghum, and 2,240 yuan/tonne for sorghum upon loading; Hinggan League 2,100 yuan/tonne for raw sorghum, 2,200-2,240 yuan/tonne for dried sorghum).
Barley: Prices at ports also keep stable (Australian barley: Shandong offers 2,040 yuan/tonne; Nantong 2,010-2,030; Guangzhou 1,910 yuan/tonne. French barley: Nantong 1,950 yuan/tonne; Guangdong 1,840-1,850 yuan/tonne. Canadian barley: Nantong 1,960 yuan/tonne. Ukrainian barley: Guangdong 1,830-1,840 yuan/tonne). Amid China's escalation of trade conflicts with the US, Chinese buyers show no interest in US sorghum purchases as the import costs are surprisingly high, so as Australian sorghum costs due to dry spell recently. In this way, sorghum July imports reach the nadir in year 2018, which leads to strong willingness for higher offers among importers in case of unavailable low costs for grain sources. Nonetheless, sprawling ASF dampens replenishment of breeding pigs, as a result, feed consumption is seen cut and grain delivery at ports also goes slack, in addition, languishing corn prices drag down its alternatives barley and sorghum when corn still grasps the price advantage, about 100 yuan/tonne less than sorghum at present. With bullish and bearish factors hovering above the market, grains like sorghum and barley today go steady in price at ports, and shorter term, are mainly to go stable.
(USD $1=CNY 6.87)
