Today ( Oct. 24th), the market for grains in China is shown as follows:
Corn: Domestic corn prices extend its strong growth 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, the price remained unchanged at 1,790 yuan/tonne for 2017 dried corn (volume weight 700 g/L), and 2018 new corn is also unchanged at 1,480 yuan/tonne for 30% moisture and 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 is stable at 1,740-1,760 yuan/tonne. At Shekou port, Guangdong, second-class old corn is quoted higher by 10 yuan/tonne at 1,930-1,960 yuan/tonne.
Currently, corn is being harvested in Northeast China, but yet to show up in batches on the market. In addition, farmers are hoarding their corn, while corn price keeps firm in auctions. And meager profits have restricted the volume transported to North China markets, where the unwillingness to sell remains strong. Due to the periodically tight supply and small volume among enterprises, corn price is brought higher gradually. The price at Southern and Northern ports and on distribution markets is also rising firmly. However, there is growing risks as purchasing price has gradually topped 2 yuan/kg at highs in Shandong, so buyers need to watch out for intensive sale pressure. In addition, more hog farmers choose to sell their pigs as the rampant African swine fever has spread to 46 cases nationwide, which is unfavorable to corn feed consumption. In general, supported by confidence from market participants, corn price may still go strong steadily in the short 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, some seeing declines. (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, and at 2,250 and 2,350 yuan/tonne separately in Qingdao; and raw sorghum is quoted lower by 30 yuan/tonne at 2,320 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: 2,100 yuan/tonne in Shandong, up 50; 2,150 in Nantong, unchanged. 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 at ports, among 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 on the shipment of grains at ports. In the co-existence of the bull and the bear, grain prices remain stable at most ports, with volatility at several ports. The overall market is predicted to remain stable in the near term, despite some slight fluctuations.
(USD $1=CNY 6.94)
