Today ( Oct. 29th), the market for grains in China is shown as follows:
Corn: Today domestic corn prices mostly keep stable, and some adjust to edge up. The procurement price in Shandong further processing companies prevails at 1,920-2,040 yuan/tonne, mostly holding the line of last Friday and some retracing by 4-6 yuan/tonne. At Jinzhou port, Liaoning, the prevailing purchasing price for 2017 dried corn is 1,790 yuan/tonne (volume weight 700 g/L), unchanged from last Friday; and 2018 new corn is priced at 1,520 yuan/tonne for 30% moisture and 1,840-1,850 yuan/tonne (volume weight over 700g/L) for 15% moisture, both leveling off from last Friday. At Bayuquan port, Liaoning, 2018 new corn is priced at 1,790-1,850 yuan/tonne and old corn at 1,740-1,770 yuan/tonne, with those at highs both gaining 10 yuan/tonne. At Shekou port, Guandong, price for second-class old corn is 1,950-1,970 yuan/tonne, with those at highs both gaining 10 yuan/tonne.
Currently, farmers still show reluctance to sell, while traders, collection and storage enterprises and processing companies are active in filling up their storehouses, so corn price is lifted to stay at high levels, and prices on Southern distribution markets and at ports continue to go strong. However, some companies in Shandong have started to pull back the price from highs slightly, and risks may occur with the intensive sales of Northeastern corn in mid-November. In addition, African swine fever still exists as an uncertainty for domestic feed consumption. In general, periodical supply is still relatively tight, so corn price will probably post a strong trend, 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, 2,130-2,150 and 2,040-2,050 yuan/tonnes in Nantong, Shanghai and Guangdong, respectively. Australian sorghum: raw sorghum down by 10 yuan/tonne to 2,200 yuan/tonne and dried sorghum down by 20 to 2,300 yuan/tonne in Tianjin, and unchanged at 2,250 and 2,350 yuan/tonne separately in Qingdao; and raw sorghum is quoted steadily at 2,320 yuan/tonne in Shanghai. Domestic sorghum price keeps steady: raw sorghum at 1,760-1,780 and dried sorghum with freight at 1,800-1,840 in Hinggan League, Inner Mongolia, and respectively at 1,700 and 1,740-1,760 yuan/tonne in Qiqihar, Heilongjiang, and dried sorghum with freight unchanged at 2,200 in Changchun, Jilin).
Barley: Price for barley at port remains stable today (Australian barley: holding the line of 2,100, 2,150, 2,000 yuan/tonne in Shandong, Nantong and Guangdong, respectively. French barley: 1,970-1,980 in Nantong, unchanged; 1,880 in Guangdong, unchanged. Ukrainian barley: 1,950-1,960 in Nantong, unchanged).
Currently, supply side looks slightly relaxed with price running low under the harvest of domestic new sorghum. In this context, Australian sorghum has totally lost its price advantages. But sorghum and barley, as the energy feed substitute of corn, have both lost price advantage against corn, creating a weak shipping state at port. Therefore, grain prices at port remain stable to fall today. Merely, importers are holding back to wait amid ongoing trade spats, and import cost for Australian sorghum is also significantly elevated by drought conditions. On this background, import volume of sorghum has hit the low in recent years, to only 25,000 tonnes at Guangdong port, which usually holds the maximum import share. Given this, holders are willing to hoard their stock to support prices. The bull still outweighs the bear in supporting the grain market at port, thus limited its downward potential. In general, the market is predicted to stay stable to have slight fluctuations, and later focus will be on new grain sales.
(USD $1=CNY 6.96)
