Today (Nov.6th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to consolidate today. The price in Shandong processing enterprises prevails at 1,920-2,040 yuan/tonne, mostly unchanged and some increasing by 6-10 yuan/tonne. At Jinzhou port, Liaoning, old corn is unchanged at 1,810 yuan/tonne (volume weight 700 g/L); 2018 new corn with 30% moisture is unchanged at 1,150 yuan/tonne, and 15% is quoted higher by 5-10 yuan/tonne at 1,840-1,850 yuan/tonne (volume weight over 700 g/L). At Bayuquan port, Liaoning, 2018 new corn is quoted higher by 10 yuan/tonne at 1,840-1,860 yuan/tonne (volume 700-720 g/L), and old corn is unchanged at 1,760-1,800 yuan/tonne (volume weight 690-700 yuan/tonne, mildew 3-4%). At Shekou port, Guangdong, second-class corn is unchanged at 1,950-1,970 yuan/tonne.
The marketing progress and transportation of corn is now hampered by a wide range of rainfalls in North China. In addition, new corn is delayed in harvest and marketing in Northeast China, and farmers are still hoarding their stocks for a bullish market; hence, corn supply continues to be scarce currently. On the other, processing enterprises are active in purchasing for good benefits. Meanwhile, feed demand will enter into the peak season in November and December, leading to a rigid demand in replenishment, which will continue to support the market. However, with new corn harvest going ahead in Northeast China and the pressure of repayment in November, buyers need to take precautions against intensive sale risks. Besides, the African swine fever, a massive blow to hog breeding, still remains as an uncertainty. In the short term, corn market will stay stable to consolidate under such cloudy and rainy weather, and later focus is still on weather conditions in planted areas, sales sentiments of farmers and arrival conditions at enterprises.
Sorghum: Imported sorghum price stays stable today. (US sorghum: raw sorghum remains unchanged at 2,130 yuan/tonne in Nantong and 2,130-2,150 yuan/tonne in Shanghai. Australian Barley: raw sorghum remains unchanged at 2,260, 2,250 and 2,320 yuan/tonne in Tianjin, Qingdao and Shanghai, and dried sorghum remains unchanged at 2,370 and 2,300-2,320 yuan/tonne in Tianjin and Qingdao. 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 today. (Australian barley: 2,150 yuan/tonne in Nantong, unchanged; French barley: 1,990 yuan/tonne in Nantong, unchanged; Canadian barley: 2,050 yuan/tonne in Nantong).
Currently, US-China trade war still remains as an uncertainty for the market, so import cost of US sorghum keeps hovering at a high level, which discourages traders to show no interest in purchasing. In this context, inventories at port have dwindled to a low level, and holders tend to hoard their stock to support the price in view of the difficulty to replenish such low-cost stocks. In addition, import cost of Australian sorghum is also brought higher substantially by drought conditions. Therefore, sorghum at port is getting support from all of these at its bottom. Merely, 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, grain market at port stays stable today, and is predicted to steady to fluctuate narrowly in the short term. Later focus will be on the trade news and corn market, which may provide some guidance to the grain market at port.
(USD $1=CNY 6.92)
