Today (Nov. 2nd), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to post some adjustments. Prices in Shandong processing companies are mostly unchanged at 1,920-2,040 yuan/tonne, with some falling another 4-12 yuan/tonne from yesterday. At Jinzhou port, Liaoning, 2017 dried corn is unchanged at 1,820 yuan/tonne (volume weight 700 g/L), and 2018 new corn is also unchanged at 1,540, 1,850-1,860 and 1,870-1,910 yuan/tonne for 30% moisture, 15% moisture of volume weight over 700 g/L and 15% moisture of volume weight over 720 g/L, respectively. At Bayuquan port, Liaoning, 2018 new corn is unchanged at 1,850-1,860 yuan/tonne, and old corn is quoted higher by 10 yuan/tonne at 1,770-1,810 yuan/tonne. At Shekou port, Guangdong, second class old corn is unchanged at 1,960-1,980 yuan/tonne.
Corn price is supported by the following factors: most processing companies in North China still hold low inventories, while holders are still reluctant to sell; corn from Northeast China still shows up in small batch, with few to Northern markets. In addition, feed consumption will enter into peak season from November, which will be bullish to corn market. And companies in Shandong will find very little room to force down their purchasing price, despite some small declines today. With the ongoing harvests in Northeast China, plus the debt repayment pressure in November, there may be some risks of intensive sales. On the whole, corn market will probably present no surge or slump in the short term and may fluctuate narrowly at highs. And 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 is 2,200, 2,230 and 2,320 yuan/tonne in Tianjin, Qingdao and Shanghai respectively, and dried sorghum is unchanged at 2,300 and 2,320 yuan/tonne in Tianjin and Qingdao. 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 is unchanged at 2,100, 2,150 and 2,020-2,050 yuan/tonne in Shangdong, Nantong and Guangdong. French barley is unchanged at 1,970-1,980 and 1,920 yuan/tonne in Nantong and Guangdong; Ukrainian Barley is unchanged at 1,870 yuan/tonne in Guangdong).
Currently, import cost of sorghum remains high due to the US-China trade dispute and droughts in Australia, so importers tend to hold back and show little interest in purchasing. In this context, sorghum import volume has been shrinking constantly so that holders choose to hoard to support prices on worries of the difficulty to replenish such low-cost inventories. In addition, new corn from Northeast China still shows up in small batch, and farmers and traders also choose to hoard their inventories, while China?Grain?Reserve Corporation is now affording high purchasing price. All these factors further boost and bring bullish sentiment to the corn market. And such high purchasing price of corn is also bullish to the overall grain market at port. Merely, 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. In the coexistence of the bull and the bear, grain market stays stable today. In general, the overall market is predicted to keep steady to fluctuate slightly in the short run, and later focus is still on new grain sale.
(USD $1=CNY 6.92)
