Today (Nov.7th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to rise today. The price in Shandong processing enterprises is 1,920-2,040 yuan/tonne, up 10-20 yuan/tonne against yesterday. At Jinzhou port, Liaoning, old corn is unchanged from yesterday at 1,810 yuan/tonne (volume weight 700 g/L); 2018 new corn with 30% moisture is unchanged at 1,510 yuan/tonne, 15% moisture of volume weight over 700 g/L is priced higher by 15 yuan/tonne at highs at 1,840-1,865, and 15% moisture of volume weight over 720 g/L is priced higher by 15 yuan/tonne at 1,880-1,895 yuan/tonne. At Bayuquan port, Liaoning, 2018 new corn is unchanged at 1,840-1,860 yuan/tonne (volume weight 700-720 g/L); old corn is unchanged at 1,760-1,800 yuan/tonne (volume weight 690-700 g/L and mildew 3-4%). At Shekou port, Guangdong, second-class old corn is unchanged at 1,950-1,970 yuan/tonne.
A wide range of rainfalls in North China has hampered corn marketing and transportation. In addition, new corn harvest and marketing are also postponed in Northeastern planted areas, and farmers are still hoarding their inventories for a bullish market. Under such circumstances, effective supply continues to be scarce. Therefore, many processors have successively raised their purchasing price slightly to lure corn sales since yesterday afternoon in Shandong; meanwhile, corn price at Northern port also remains steady to rise today, thus increasing the shipment. However, new corn sales will gradually increase with the completion of harvest in Northeast China. Besides, the African swine fever continues to spread, for which farmers are unwilling to replenish and some small and medium-sized?farms have stalled their breeding. On the whole, corn market is predicted to stay stable to consolidate in the short run, and later focus is still on the weather conditions and sales sentiment of farmers. Later market will suffer more and more risks under such a hoarding atmosphere, so farmers are suggested to sell for cash in due time.
Sorghum: Imported sorghum price stays stable today. (US sorghum: raw sorghum remains unchanged at 2,130 yuan/tonne in Nantong, 2,130-2,150 yuan/tonne in Shanghai and 2,040-2,050 yuan/tonne in Guangdong. 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 is unchanged at 2,150 yuan/tonne in Nantong and at 2,020-2,050 yuan/tonne in Guangdong; French barley is unchanged at 1,990 yuan/tonne in Nantong and 1,920 yuan/tonne in Guangdong; Canadian barley: 2,050 yuan/tonne in Nantong; Ukainian barley: 1,870 yuan/tonne in Guangdong).
Currently, US sorghum import is quite costly amid the ongoing trade spat, for which traders tend to hold back and show little interest in purchasing. In this context, sorghum inventory at ports keeps shrinking and it has dwindled to 20,000 tonnes at Guangdong port, which usually owns the maximum import share. Besides, import cost for Australian sorghum is also brought higher largely by the droughts. In view of the difficulty to replenish low-cost stocks, holders tend to hoard their stock to support the price. Therefore, the overall grain market is propped up at its bottom. Merely, sorghum and barley have lost their price advantage as energy feed substitutes of corn. And the weak demand for grain is cracking down on the grain market 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 slightly in the short term. Later focus will be on the trade news and corn market trends, which may provide some guidance to the grain market at port.
(USD $1=CNY 6.93)
