Today ( Oct. 11th), 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 up by 4-20 from yesterday. In Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn is 1,760 yuan/tonne (volume weight 700 g/L), down 10 from yesterday; and 2018 new corn is priced at 1,450 for 30% moisture, down 10 yuan/tonne, and 1,760-1,775 yuan/tonne (volume weight over 700g/L) for 15% moisture, down 5-10 yuan/tonne. In Bayuquan port, Liaoning, 2018 new corn is priced steadily at 1,750-1,770 yuan/tonne (volume weight 700 g/L) and old corn is also 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. In North China, farmers and traders improve their appetite for hoarding dried corn in the clear weather, which is good for corn drying and reserving. Under this, participants gradually open their silos to stock up corn, and further-processing companies are active in forcing up price when purchasing. Therefore, corn price in Shandong has totally gained 20-100 yuan/tonne recently. On the other hand, corn supply pressure will probably increase with the intensive sales, for new corn is in its harvesting and marketing season amid the ongoing auctions of old corn, while on the demand side, corn feed consumption is damaged by the African swine fever, the high-incidence of influenza in autumn and winter, as well as the sluggish aquaculture. Hence, corn price at ports in coastal areas has slight falls recently. In general, corn price growth impetus will be restricted by the market pressure exerted by the intensive sales of new corn, so it will remain stable in narrow fluctuation. Later focus shall be put on the weather in main planted area, new corn harvests and sales, as well as demand from downstream.
Sorghum: Imported sorghum prices keep stable today. (US sorghum: Both raw and dried sorghum remain unchanged at 2,180 yuan/tonne and 2,290 yuan/tonne separately in Tijian, and the price for raw sorghum is also unchanged at 2,100 yuan/tonne, 2,130-2,150 yuan/tonne and 2,050 yuan/tonne correspondingly in Nantong, Shanghai and Guangdong. Australian sorghum: Tianjin raw sorghum 2,260, unchanged, and dried sorghum 2,370, unchanged; Shanghai raw sorghum 2,400, unchanged. Domestic sorghum price also holds steady: price for old and dried sorghum with freight included is 2,300 and 2,400 respectively in Changchun, Jilin and Daqing, Heilongjiang, both unchanged; Qiqihar,Heilongjiang new and raw sorghum both at 1,900-1,940, and at 2,240 with freight included, unchanged; Hinggan League, Inner Mongolia raw sorghum 1,700-1,740 and raw sorghum 1,940-1,960 with freight included, unchanged).
Barley: Today, price for barley at port remains stable (Australian barley: remaining unchanged at 2,060 in Shandong, 2,050 in Nantong and 2,000 in Guangdong; French barley is unchanged at 1,970-1,980 and 1,880 in Nantong and Guangdong respectively; Ukrainian barley is unchanged at 1,950-1,960 in Nantong). Currently, importers are unwilling to purchase US sorghum due to the high import cost under ongoing trade war. On the other side, Australian sorghum cost is largely lifted by the dried weather. Under such circumstance, August has witnessed lowest import volume of sorghum at port within this year, sharply dragging down the stock at main ports. Considering the difficulty to replenish low cost stocks, importers tend to hoard their stocks to force up prices.
Merely, hog farmers keep selling out their pigs instead of replenishment due to the concerns over the rampant ASF, which is cutting feed consumption and unfavorable to overall sales of grains at port. In addition, sorghum fails to grasp its cost performance for its higher price than corn by 130 yuan/tonne. And the market of sorghum and barley is further dented by weak corn price. Prices for sorghum and barley hold steady today under the coexistence of the bullish and the bearish, and may keep stable for the near term.
(USD $1=CNY 6.93)
