Today ( Oct. 31st), the market for grains in China is shown as follows:
Corn: Domestic corn price goes strong to consolidate today. The price in Shandong processing enterprises is 1,920-2,040 yuan/tonne, unchanged broadly despite some falls of 4-12 yuan/tonne against yesterday. At Jinzhou port, Liaoning, 2017 dried corn is 1,820 yuan/tonne (volume weight 700 g/L), unchanged from yesterday; 2018 new corn is also unchanged at 1,540 yuan/tonne and 1,850-1,860 yuan/tonne for 30% moisture and 15% moisture of volume weight over 700 g/L, respectively; and 2018 new corn with 15% moisture of volume weight over 720 g/L is 1,870-1,895 yuan/tonne, with those at highs gaining another 10 yuan/tonne. At Bayuquan port, Liaoning, both old corn and 2018 new corn are quoted higher by 10 yuan/tonne at 1,750-1,790 and 1,850-1,860 yuan/tonne, respectively. At Shekou port, Guangdong, second class old corn is 1,960-1,980 yuan/tonne, up by 10 yuan/tonne over yesterday.
Corn price in North China snaps its rises to keep stable so that sentiment for hoarding is somewhat shaken. In addition, some enterprises in Shandong have tried to cut down the price slightly as corn form the Northeast is on the rise. And Northeastern farmers have propelled their harvest progress, so later focus will on their mentality for sales. However, bullish mood for later market is still strong, with farmers and traders tending to hoard their inventories, so the effective supply is still relatively tight now. In addition, downstream demand for building inventories is increasing. Therefore, short-term corn price is predicted to fluctuate to go strong, and later focus is still on weather conditions in planted areas, marketing sentiment of farmers as well as inventories and goods arrivals in enterprises.
Sorghum: Imported sorghum is priced steadily today (US sorghum: raw sorghum remains unchanged at 2,100, 2,130-2,150, and 2,040-2,050 yuan/tonne in Nantong, Shanghai and Guangdong, respectively; Australian sorghum: raw sorghum remains unchanged at 2,200, 2,250 and 2,320 yuan/tonne in Tianjin, Qingdao and Shanghai, respectively, and dried sorghum also remains unchanged at 2,300 and 2,350 yuan/tonne in Tianjin and Qingdao respectively; Domestic sorghum price keeps steady: raw sorghum remains unchanged at 1,760-1,780 and 1,700 yuan/tonne in Hinggan League, Inner Mongolia and Qiqihar, Heilongjiang, respectively, and dried sorghum with freight is unchanged at 1,800-1,840, 1,740-1,760 and 2,200 yuan/tonne in Hinggan League, Qiqihar and Changchun, Jilin, correspondingly).
Barley: Barley is priced steadily at port today (Australian barley remains unchanged at 2,100, 2,150 and 2,020-2,050 yuan/tonne in Shandong, Nantong and Guangdong, respectively; French barley is unchanged at 1,970-1,980 and 1,890 yuan/tonne in Nantong and Guangdong, respectively; Ukrainian barley is also unchanged at 1,870 yuan/tonne in Guangdong).
Import cost of US sorghum has risen to high levels under ongoing trade frictions, so importers are unwilling to purchase. In addition, import cost of Australian sorghum has also been lifted dramatically by drought conditions. In this context, sorghum import volume has shrunk to low levels seen in recent years, and it has dwindled to 25,000 tonnes at Guangdong port, which usually owns the maximum import share, so holders are quite willing to support prices. Propped up by the above bullish factors, grain market runs stable to increase today. However, domestic sorghum is now at harvest and entering the market gradually so that supply now gets a little relaxed with the price running at lows. By contrast, Australian sorghum has lost its price advantage against domestic sorghum, and sorghum and barley have also lost their price advantage as energy feed substitutes of corn, leading to weak shipment at ports. In the coexistence of the bull and the bear, sorghum and barley markets stay stable today, and are predicted to fluctuate slightly in the short term. And later focus is still on new gain sales.
(USD $1=CNY 6.97)
