Today ( Oct. 10th), 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 1,770-1,940 yuan/tonne, some increasing by 10-20 from yesterday. In Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn remains unchanged at 1,770 yuan/tonne (volume weight 700 g/L), and 2018 new corn is priced steadily at 1,460 for 30% moisture, and down by 10 yuan/tonne to 1,765-1,775 yuan/tonne (volume weight 700 g/L) and 1,780 yuan/tonne (volume weight over 700g/L) for 15% moisture. In Bayuquan port, Liaoning, 2018 new corn falls by 10 yuan/tonne to 1,750-1,770 yuan/tonne (volume weight 700 g/L) 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. The adjustment of corn price today can be attributed to later factors. While some companies have nearly used up their corn stock , farmers in North China and traders are still hoarding their their stocks, for which corn is in increasing demand and is quoted higher and higher recently. However, corn supply will bear more and more pressure under the ongoing auctions of temporary reserved corn and the intensive sales after new corn is harvested in main planting areas. And if downstream further processing companies maintain their hand-to-mouth tactic and rampant ASF keeps slashing corn feed consumption, corn will get weak in trending up. Overall, short-term corn will stay in narrow fluctuation. Later focus shall be put on the weather in main planted area, new corn on the market and deals on the 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).
It is reported that Larry Kudlow, White House economic adviser, says that US President Donald Trump thinks the relation between China and the US have broken up, which directly destroys the hope for thaws in the trade tensions. In addition, import cost has again increased by RMB devaluation under China’s reserve requirement cut, of which US sorghum has increased to a historical high. Besides, import cost of Australian sorghum has also increase largely due to the droughts. Under such circumstances, importers are reluctant to purchase, so import volume of sorghum keeps stepping down to only 60,000 tonnes in August, and stock at main ports has fallen to a low level. In view of difficulty in replenishing low-cost sorghum, importers are hoarding their stock to support the price. Barley market is bullish today due to its tight supply and high cost. Prices for barley and sorghum both see gains today, and may go strong in the next few days. Merely, as energetic substitutes feed of corn, both sorghum and barley fail to grasp price advantage, so the weak demand will also limit the upside height of spots.
(USD $1=CNY 6.92)
