Today ( Oct. 16th), the market for grains in China is shown as follows:
Corn: Today corn stays stagnant and remains stable in Northern market, and gains at port. The procurement price in Shandong further processing companies prevails at 1,830-1,970 yuan/tonne, mostly unchanged and some losing 10-20 from yesterday. In Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn remains unchanged at 1,760-1,770 yuan/tonne (volume weight 700 g/L), and 2018 new corn is priced steadily at 1,450-1,460 for 30% moisture, and goes up 10 yuan/tonne to 1,780-1,790 yuan/tonne for 15% moisture. In Bayuquan port, Liaoning, 2018 new corn gains 10 yuan/tonne to 1,770-1,790 yuan/tonne and old corn is stable at 1,730-1,750 yuan/tonne. In Shekou port, Guandong, second-class old corn is quoted higher by 10 yuan/tonne to 1,900-1,920 yuan/tonne. Corn feed consumption is slow in recovering, for hog breeding is now reeling from the rampant ASF. In addition, buyers tend to wait on the sidelines in light of the imminent sales of new corn in Northeast China and continuous price hikes among Northern processing companies; therefore, corn price stays stagnant and remains stable today. Merely, traders are keen on hoarding amid phase-wise supply tensions, while collection & storage and processing enterprises are active in purchasing and even jump into a buying spree, and some even purchase at a high of 2 yuan/kg. Given this, participants feel confident in later market, so corn price may go strong in fluctuation in the near term. Meanwhile, buyers should keep a good watch for periodic pullbacks under the pressure of new corn sales. And later focus shall be on weather in main planted area, new corn harvests and sales, as well as downstream demands.
Sorghum: Imported sorghum price keeps stable today (US sorghum: raw sorghum is unchanged at 2,100 and 2,130-2,150 yuan/tonnes in Nantong and Shanghai respectively. Australian sorghum: raw sorghum and dried sorghum at 2,220 and 2,330 yuan/tonne respectively in Tianjin, at 2,250 and 2,350 yuan/tonne separately in Qingdao and raw sorghum is 2,330-2,350 yuan/tonne in Shanghai. Domestic sorghum price also stays steady: new sorghum and raw sorghum at 1,700 and dried sorghum with freight at 1,800 in Hinggan League, Inner Mongolia, and respectively at 1,800 and 2,080 yuan/tonne in Chifeng, Inner Mongolia, and respectively at 1,700 and 1,760 yuan/tonne in Qiqihar, Heilongjiang.)
Barley: Today, price for barley at port remains stable (Australian barley: unchanged at 2,060 yuan/tonne in Shandong and 2,050-2,090 in Nantong; French barley: unchanged at 1,970-1,980 and 1,880 in Nantong and Guangdong respectively).
Currently, importers have no stomach for US sorghum facing high import costs as there is no sign of a thaw in the trade war. Under such circumstance, import volume keeps shrinking at port, with stock dwindling to a low level at main ports, among which it has fallen to 39,000 tonnes at Guangdong port. Considering the difficulty to replenish low-cost stocks, importers tend to hoard their stocks to support prices. Merely, aquaculture demand has turned weak, and domestic barley has gradually appeared on the market, so market supply is relatively loose now. Moreover, sorghum has lost its cost advantage for its higher price than corn by 140 yuan/tonne, which further slashes the grain market at port. Facing the co-existence of the bullish and the bearish, grain market runs steadily today, and it is predicted to remain the steady state in the near term.
(USD $1=CNY 6.92)
