Today ( Oct. 9th), the market for grains in China is shown as follows:
Corn: Today domestic corn prices mostly keep stable, and some adjust to edge up. The procurement price in Shandong further processing companies prevails at 1,770-1,920 yuan/tonne, some increasing by 6-20 from yesterday. In Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn is 1,770 yuan/tonne (volume weight 700 g/L), some at high prices down 20 from yesterday; and 2018 new corn is priced steadily at 1,460 for 30% moisture, and 1,805 yuan/tonne (volume weight 700 g/L) and 1,790 yuan/tonne (volume weight over 700g/L) for 15% moisture. In Bayuquan port, Liaoning, 2018 new corn is priced at 1,760-1,780 yuan/tonne (volume weight 700 g/L), down 20, and old corn is stable at 1,730-1,750 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). In Shekou port, Guandong, price for second-class old corn is leveling off at 1,900-1,920 yuan/tonne. On one hand, old corn price still keeps firm as new corn is yet to harvest in Northeast China, and gap of demand and supply may be further enlarged by the production cut forecast of new planted corn. Under such circumstances, market participants are positive toward later market, with more and more companies to hoard and build new stock. On the other hand, market participants are rushing to purchase new corn, whose quality, compared with last year, is brought higher by the clear weather in North China. Both these two factors together buoy new corn in North China to see small increases. Nonetheless, the upcoming of new corn marketing in Northeast China, along with the ongoing auctions of temporary reserved corn, will make corn supply get loose. And now further processing companies are just building their stock at a small scale, while corn forage consumption is crippled by the damaging African swine fever; therefore, corn price gets curbed, and weak in its upside trend. In general, domestic corn price will be in adjustment state in narrow volatility. 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 stay stable today. (US sorghum: raw sorghum is 2,180 yuan/tonne, 2,100 yuan/tonne, 2,130-2,150 yuan/tonne and 2,040 yuan/tonne for in Tianjin, Nantong, Shanghai and Guangdong, all unchanged, and dried sorghum is stable at 2,290 and 2,230-2,250 yuan/tonne in Tianjin and Shanghai; Australian sorghum: raw sorghum and dried sorghum remain stable at 2,260 and 2,370 respectively in Tianjin, and also stable at 2,330-2,400 and 2,430-2,500 yuan/tonne separately in Shanghai. Domestic sorghum price holds steady: Changchun, Jilin dried sorghum 2,300 yuan/tonne; Daqing, Heilongjiang both new corn and 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 remains stable today (Australian barley: unchanged at 2,040-2,050 yuan/tonne in Shandong, 2,050 in Nantong, 2,040-2,050 in Zhangjiagang and 1,980 in Guangdong; French barley is unchanged at 1,970-1,980 and 1,870-1,880 in Nantong and Guangdong respectively, and Ukrainian barley is unchanged at 1,950-1,960 in Nantong). Currently, importers tend to shrink back at the sight of the high import cost of US sorghum under escalating trade conflicts. 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.
Merely, corn supply is going looser as new corn in North China and Huang-Huai area has been harvested and entered market at a sizable scale. In addition, as energetic substitute feed of corn, both sorghum and barley fails to grasp price advantage, while the weak demand of corn will slash grain delivery at port. Facing the co-existence of the bullish and the bearish, grains at port keep stable prices today. Later focus will be put on new corn marketing, which will be a guidance for late market.
(USD $1=CNY 6.92)
