Today ( Oct. 22nd), the market for grains in China is shown as follows:
Corn: Domestic corn prices extend to rise today. The procurement price in Shandong further processing companies prevails at 1,880-1,996 yuan/tonne, some gaining another 10-40 yuan/tonne from last Friday. At Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn is 1,790 yuan/tonne (volume weight 700 g/L), up 10 yuan/tonne from last Friday; and 2018 new corn is priced at 1,470 yuan/tonne for 30% moisture, up 10-20 yuan/tonne from last Friday, and 1,820-1,835 yuan/tonne (volume weight over 700g/L) for 15% moisture, with those at highs gaining 20-25 yuan/tonne from last Friday. At Bayuquan port, Liaoning, 2018 new corn is priced at 1,790-1,820 yuan/tonne, with those at highs gaining 20 yuan/tonne, and old corn at 1,740-1,760 yuan/tonne, with those at highs gaining 10 yuan/tonne. At Shekou port, Guandong, price for second-class old corn is 1,930-1,950 yuan/tonne, up 10-20 yuan/tonne from last Friday.
Currently, bullish sentiment is still strong for corn later market. While farmers and traders tend to hoard their stock, China?Grain?Reserves?Corporation?has started to purchase at high prices, which further shores up market confidence. And the arrival volume of corn at factories is still small, so corn price is gradually lifted, of which it will be nearly 2 yuan/kg in Shandong. Meanwhile, prices continue to strengthen at Northern ports, and mentality also goes strong gradually on Southern markets under the cost push. Besides, the arrival schedule of ships is less recently. Therefore, corn trading price is pulled up. Merely, supply pressure still exists, for there may be unexpected intensive sales of new corn as it is the harvest time in Northeast. In addition, more hog farmers, worrying about worsening African swine fever, choose to sell their pigs than to make replenishment, which goes against corn feed consumption. In general, corn market will probably go strong steadily with adjustments in the short run. Later focus will be on weather in main planted areas and sale progress of corn on distribution markets. If intensive sales of new corn appear, there will be callbacks for some time.
Sorghum: Imported sorghum prices see some declines in a stable state today. (US sorghum: raw sorghum remains stable at 2,100 yuan/tonne in Nantong and 2,130-2,150 yuan/tonne in Shanghai. Australian sorghum: raw sorghum and dried sorghum are quoted lower by 10 yuan/tonnes respectively to 2,210 and 2,320 in Tianjin, and quoted steadily at 2,250 and 2,350 yuan/tonnes in Qingdao, and raw sorghum is unchaged at 2,330-2,350 yuan/tonne in Shanghai. Domestic sorghum price drops: Purchasing prices for raw sorghum and dried sorghum with freight fall 40 and 140 respectively to 1,700 and 1,800 yuan/tonne in Hinggan League, Inner Mongolia, and it is stable for both new & raw and dried sorghum at 1,800 and 2,080 yuan/tonne separately in Chifeng, Inner Mongolia.
Barley: Price for barley at port gains steadily today (Australian barley: 2,050-2,060 yuan/tonne in Shandong, unchanged; 2,150 in Nantong, up 70. French barley: 1,970-1,980 in Nantong, unchanged).
Currently, importers tend to wait in face of the high import cost for US sorghum amid ongoing trade conflicts, meanwhile, import cost for Australian sorghum is also brought higher largely by the droughts. Under such circumstances, sorghum import volume continues to decline, of which the stock at Guangdong port has dwindled to 32,000 tonnes, so traders holding stocks are quite willing to support the price. In addition, barley is of tight supply at port, with a high import cost. Therefore, grains at port is getting support from those bullish factors. Merely, as the energy feed substitute of corn, sorghum and barley post no price advantage against corn, while the weak demand for corn is cracking down the shipment of grains at ports. Besides, Australian sorghum supply gets looser with the marketing of domestic new sorghum, so sorghum price sees some declines. Today, grain market at port edges down steadily, and later focus will be on the new grain marketing.
(USD $1=CNY 6.93)
