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Daily Review on Grain Market in China

2018-11-01 www.cofeed.com
      Today (Nov. 1st), the market for grains in China is shown as follows:

  Corn: Domestic corn price stays stable to adjust narrowly today. The price in Shandong processing enterprises is 1,920-2,040 yuan/tonne, mostly unchanged from yesterday and some falling by another 4-20 yuan/tonne. At Jinzhou port, Liaoning, 2017 dried corn is 1,820 yuan/tonne (volume weight 700 g/L), and 2018 new corn is unchanged at 1,540 yuan/tonne for 30% moisture and 1,850-1,860 yuan/tonne for 15% moisture (volume weight over 700 g/L); 2018 new corn with 15% moisture is 1,870-1,910 yuan/tonne (volume weight over 720 g/L), with those at highs rising 15 yuan/tonne from yesterday. At Bayuquan port, 2018 new corn is unchanged at 1,850-1,860 yuan/tonne; old corn is 1,750-1,800 yuan/tonne, with those at highs rising 10 yuan/tonne from yesterday. At Shekou port, Guangdong, second class old corn is unchanged at 1,960-1,980 yuan/tonne. 
Corn supply turns loose slightly in North China, where some traders do not stand firm any longer for hoarding and the amount from Northeast is on the rise, so some processors in Shandong have lowered their purchasing price gradually, by a total of 10-30 yuan/tonne recently. And harvest in Northeast is coming to an end, so local sales should be kept under close watch. However, before the absorption of supply pressure, sentiment for hoarding will pervade for a bullish market. In addition, downstream terminal companies are in growing demand for replenishment. Therefore, corn market is propped up, and is predicted to see no surge or slump in the short term and to fluctuate narrowly at highs. Later focus is still on weather conditions and deliveries in planted areas, sales sentiments and corn arrivals to enterprises. 
    
    Sorghum: Imported sorghum price is stable today, despite some declines. (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 and dried sorghum are separately at 2,200 and 2,300 in Tianjin, both unchanged, and at 2,230 and 2,320 in Qingdao, down by 20 and 30 respectively, and raw sorghum is unchanged at 2,320 yuan/tonne in Shanghai; 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: Imported barley price stays stable to rise today. (Australian barley: Shangdong 2,100 yuan/tonne, Nantong 2,150 yuan/tonne, Guangdong 2,020-2,050 yuan/tonne, all unchanged; French barley: Nantong 1,970-1,980, unchanged; Guangdong 1,920, up 30; Ukrainian Barley: Guangdong 1,870 yuan/tonne, unchanged).
  
    Currently, domestic sorghum is at harvest and entering the market gradually so that supply 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, affecting shipping state at ports. Merely, importers for US sorghum are hold back by the ongoing US-China trade frictions, and their willingness to purchase Australian sorghum is cracked down by high import cost, which is lifted dramatically by drought conditions. In this context, sorghum import volume has been shrinking constantly, strengthening holders’ resolution to support prices. Propped up by the above bullish factors, grain market runs stable to increase today. In the coexistence of the bull and the bear, grain market stays table today, despite some fluctuations at some ports. And the overall market is predicted to keep steady to fluctuate slightly in the short run.

(USD $1=CNY 6.97)