Today ( Oct. 17th), the market for grains in China is shown as follows:
Corn: Today domestic corn prices gain in overall stability. The procurement price in Shandong further processing companies prevails at 1,830-1,970 yuan/tonne, mostly keeping stable and some gaining 10 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 1,790-1,805 yuan/tonne for 15% moisture (volume weight over 700 g/L). In Bayuquan port, Liaoning, 2018 new corn remains unchanged at 1,770-1,790 yuan/tonne and old corn rises by 10 yuan/tonne to 1,740-1,750 yuan/tonne. In Shekou port, Guandong, second-class old corn is quoted higher by 10 yuan/tonne to 1,910-1,930yuan/tonne. Currently, participants still remain bullish to later market, as farmers and traders are still reluctant to sell out, while subordinated warehouses and processing companies are active in purchasing (Among them, some processing companies in Jilin have gradually begun to purchase new corn). Overall, corn prices keep rising nationwide, especially Shangdong and South & North ports. Supported by the short supply and the bullish stance, corn market may go up steadily. However, sale peaks may come soon amid the harvest of new corn in Northeast China. In addition, corn feed consumption is slow in recovery as hog farmers are busy in dumping their pigs instead of replenishment due to the deteriorating ASF. Hence, 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 (of higher quality) 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 2,080-2,090 in Nantong; French barley: unchanged at 1,970-1,980 and 1,880 in Nantong and Guangdong respectively).
Currently, importers are discouraged by high import costs of US sorghum as there is no sign of a thaw in the trade war. Besides, Australian sorghum cost is also brought higher by the droughts. Under such circumstance, import volume at port shrinks largely, with stock dwindling to a low level at main ports. Considering the difficulty to replenish low-cost stocks, importers tend to hoard their stocks to support prices. Moreover, participants are bullish to later market of corn this year, with farmers and traders in strong will to hoard their stock, which in turn may support grain market at port, especially sorghum and barley, as the energy feed substitutes of corn. Merely, grains at port may be influenced by the reducing feed consumption amid worsening ASF, which pushes hog farmers to dump their pigs rather than replenish. In the co-existence of the bull and bear, grain market at port remains stable today, and may run steadily in the near term.
(USD $1=CNY 6.92)
