Today (Nov. 5th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to go weak today. The price in Shandong processing enterprises is 1,920-2,040 yuan/tonne, mostly unchanged from last week and some adjusting slightly. At Jinzhou port, Liaoning, old corn is priced lower by 10 yuan/tonne at 1,810 yuan/tonne (volume weight 700 g/L); 2018 new corn with 30% moisture is quoted lower by another 10 yuan/tonne from yesterday at 1,510 yuan/tonne, and 15% moisture is quoted lower by 15-20 yuan/tonne from yesterday at 1,835-1,840 yuan/tonne (volume weight over 700 g/L). At Bayuquan port, Liaoning, 2018 new corn is quoted lower by 10 yuan/tonne against last Friday at 1,840-1,850 yuan/tonne (volume weight 700-720 g/L); old corn is quoted lower by 10 yuan/tonne from last Friday at 1,760-1,800 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). At Shekou port, Guangdong, second-class old corn is quoted down by 10 yuan/tonne from last Friday at 1,950-1,970 yuan/tonne.
Over the weekend, the intensive amount arriving at Northern port has cracked down corn price to stop rising and fall, and the price at Southern port has followed to fall back to adjust. And today, corn price stays stable to go weak. With the improving harvest progress in planted areas in November, there may be some risks of intensive sales by farmers. However, due to cloudy and rainy weather in most North parts, in addition that farmers are still reluctant to sell, the effective supply is still inadequate amid the rigid demand from processing companies. Under such circumstances, corn feed demand may enter its peak season in the fourth quarter, which may continue to support the corn market. In general, corn market may fluctuate at high prices in the short run, and later focus is still on weather conditions in planted areas and sales sentiments of farmers.
Sorghum: Imported sorghum price stays stable to rise today. (US sorghum: raw sorghum goes up by 30 yuan/tonne to 2,130 yuan/tonne in Nantong and remains unchanged at 2,130-2,150 yuan/tonne in Shanghai. Australian Barley: raw sorghum goes up by 60 yuan/tonnes to 2,260 yuan/tonne in Tianjin and remains unchanged at 2,320 yuan/tonne in Shanghai, and dried sorghum goes up by 70 yuan/tonne in Tianjin. Domestic sorghum price keeps steady: raw sorghum remains unchanged at 1,960 and 1,900 yuan/tonne in Chifeng, Inner Mongolia and Daqing, Heilongjiang, respectively, and dried sorghum with freight is unchanged at 2,100 and 2,000 yuan/tonne correspondingly in these two areas).
Barley: Barley price stays stable to rise today. (Australian barley: 2,150 yuan/tonne in Nantong, unchanged; French barley: 1,990 in Nantong, up 20 yuan/tonne; Canadian barley: 2,050 yuan/tonne).
Currently, importers tend to wait and have no appetite for US sorghum as its import cost has remained at highs amid ongoing trade conflicts. Meanwhile, import cost for Australian sorghum is also brought higher largely by the droughts. In this context, sorghum import volume has shrunk to low levels seen in recent years, and it has dwindled to 20,000 tonnes at Guangdong port, which usually owns the maximum import share, so holders are quite willing to support prices. Therefore, the overall grain market is propped up by the above bullish factors and grain prices are going up today. Merely, sorghum and barley have also lost their price advantage as energy feed substitutes of corn, leading to weak shipment at ports. Besides, the grain market itself is weak in demand, which also restricted price growth. In general, the grain market is predicted to stay stable to go strong in the short run, and later focus will be on the trade news and corn market, which may bring some guidance to the grain market at port.
(USD $1=CNY 6.91)
