Today ( Oct. 8th), the market for grains in China is shown as follows:
Corn: Today domestic corn prices are mixed today. The procurement price in Shandong further processing companies prevails at 1,770-1,920 yuan/tonne, some up 20-100 from those before National Day. In Jinzhou port, Liaoning, the prevailing purchasing price of 2017 dried corn is 1,770-1,790 yuan/tonne for volume weight at 700 g/L and 1,800 yuan/tonne for volume weight over 720, with those at higher prices down 10 and 20 respectively against those before National Day, and the price for 2018 new corn with 30% moisture remains unchanged at 1,460 yuan/tonne and goes down by 10 yuan/tonne to 1,785-1,900 for those with 15% moisture; in Bayuqan port, Liaoning, 2018 new corn is priced at 1,780 yuan/tonne and old corn at 1,740-1,750 yuan/tonne, both down 10 yuan/tonne from those before holidays. In Shekou port, Guangdong, price for second-class old corn is 1,900-1,920 yuan/tonne, those at lower prices declining by 10 yuan/tonne from those before holidays. During the National Day, new corn in North China are harvested and enter the market at a sizable scale. And corn cob enjoys pretty good sale in North China market as new corn in Northeast China is yet to be harvested. As some companies and traders are seeking to hoard for their silos, corn price in Shandong has stopped falls and rebounded over the holiday, with some companies mounting price hikes by 20-100 yuan/tonne. However, the later supply will stay loose as new corn marketing in Northeast China draws closer, plus the ongoing auctions of temporary reserved corn, while further processing companies choose to buy on a mouth-to-hand basis and corn forage consumption is crippled by the damaging African swine fever; hence, corn market will get curbed by such fundamentals. Overall, domestic corn price will adjust in fluctuation within its trading range, and later focus shall be put on the weather in main planting area, new corn marketing and deals clinched on temporary reserved corn auctions.
Sorghum: Imported sorghum prices go up today. (US sorghum: raw sorghum is 2,100 yuan/tonne, 2,130-2,150 yuan/tonne and 2,040 yuan/tonne for in Nantong, Shanghai and Guangdong, all up 20 yuan/tonne, and dried sorghum is stable at 2,230-2,250 yuan/tonne in Shanghai; Australian sorghum: raw sorghum and dried sorghum remain stable at 2,330-2,400 and 2,430-2,500 separately in Shanghai. Domestic sorghum price holds steady: Daqing, Heilongjiang dried sorghum 2,200 (higher quality), unchanged; new and dried sorghum in Qiqihar, Heilongjiang unchanged at 1,700 and 1,900 respectively, and Hinggan League raw sorghum 1,700-1,740 and dried sorghum 1,940-1,960, both unchanged).
Barley: Price for barley at port goes up today (Australian barley: 2,060-2,080 yuan/tonne in Shandong, 2,050 in Nantong, 2,040-2,050 in Zhangjiagang and 1,980 in Guangdong, up 20, 50, 40 and 60 yuan/tonne respectively; French barley is 1,970-1,980 and 1,870-1,880 in Nantong and Guangdong respectively, each up 20 and 30; Ukrainian barley is unchanged at 1,950-1,960 in Nantong).
Currently, importers tend to shrink back at the sight of the unprecedentedly high import cost of US sorghum as there is no sign of thaw for the trade tensions. Besides, import price for Australian sorghum also stays at a high level due to the droughts. Therefore, import volume of sorghum steps down in the last two months, with August seeing only 60,000 tonnes. In view of the declining stock at main ports and the difficulty to replenish such low cost stocks, importers holding stock are incline to hoard their sorghum for a bullish market. Additionally, import cost for barley also keeps high, especially amid the bearish factors brought by the increasing new corn prices this year. Prices for barley and sorghum at port both go up today, and are predicted to show strong growth impetus in recent days. Merely, as energetic substitute feed of corn, both sorghum and barley fails to grasp price advantage, so the weak market will also limit the upside height of spots.
(USD $1=CNY 6.87)
