Today ( Oct. 23rd), the market for grains in China is shown as follows:
Corn: Domestic corn prices extend gains partially today. The procurement price in Shandong further processing companies prevails at 1,900-2,010 yuan/tonne, some gaining another 10-20 yuan/tonne from yesterday. At Jinzhou port, Liaoning, 2017 dried corn is quoted steadily at 1,790 yuan/tonne (volume weight 700 g/L), and 2018 new corn is quoted higher by 10 yuan/tonne at 1,480 for 30% moisture and higher by 5-10 yuan/tonne to 1,830-1,840 yuan/tonne for 15% moisture (volume weight over 700 g/L). At Bayuquan port, Liaoning, 2018 new corn is quoted steadily at 1,790-1,820 yuan/tonne and old corn at 1,740-1,760 yuan/tonne. At Shekou port, Guandong, second-class old corn is quoted steadily at 1,930-1,950 yuan/tonne.
Currently, corn in Northeast China is in the harvest season, but new corn is yet to show up on the market at a large scale as farmers are hoarding their stock to support the price. Besides, market confidence is further boosted as sentiment for hoarding corn stock still exists in North China, while China Grain Reserves Corporation has started to purchase at high prices. And due to the tight supply periodically and regionally, corn price is lifted to go up gradually, with Shandong topping of 2 yuan/kg today. And corn prices at Southern and Northern ports and in distribution areas also follow to rise. However, corn from Northeast China has been transported to Shandong partially due to high purchasing price, so buyers need to watch out for intensive sales. In addition, corn feed consumption is hard to increase, as more hog farmers choose to sell out than to replenish on worries of the escalating African swine fever (amounting to 46 cases nationwide). Overall, corn market may still go strong steadily in the near term, and later focus will be on weather in main planted areas and sale progress of corn on distribution markets.
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 remain steadily at 2,210 and 2,320 yuan/tonne respectively in Tianjin, at 2,250 and 2,350 yuan/tonne separately in Qingdao and raw sorghum is unchanged at 2,330-2,350 yuan/tonne in Shanghai. Domestic sorghum price also stays steady: raw sorghum at 1,700-1,740 and dried sorghum with freight at 1,800-1,840 in Hinggan League, Inner Mongolia, respectively at 1,700 and 1,760 yuan/tonne in Qiqihar, Heilongjiang, respectively at 1,900 and 2,000 yuan/tonne in Daqing, Heilongjiang, and respectively at 2,100 and 2,200 in Changchun, Jilin).
Barley: Price for barley at port gains steadily today (Australian barley: 2,050-2,060 yuan/tonne in Shandong and 2,150 in Nantong, both unchanged; French barley: 1,970-1,980 in Nantong, unchanged).
Import cost for US sorghum has risen to a historical high after the US-China trade war took place, so importers tend to wait and have no appetite for US sorghum. In addition, cost for Australian sorghum is also significantly elevated by the droughts. On this background, import volume of sorghum continues to slip, to only 32,000 tonnes at Guangdong port. So importers are willing to hoard their stock to support prices on worries of the difficulty to replenish such low-cost sorghum. On the other hand, corn price at port keeps rising, which is bullish to the overall grain market. Merely, hog breeding is severely slashed as more hog farmers choose to sell than to replenish in face of the rampant ASF. This reduces feed consumption, and thus cracking down on sorghum and barley markets. In the co-existence of the bull and the bear, grain prices remain stable at port, and may see slight volatility in the near term.
(USD $1=CNY 6.94)
