Today (Nov.8th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to rise today. The price from Shandong processors prevails at 1,920-2,050 yuan/tonne, gaining another 10-20 yuan/tonne from yesterday. 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 1,510 yuan/tonne, 15% moisture (volume weight over 700 g/L) is unchanged at 1,840-1,865 yuan/tonne, and 15% moisture (volume weight over 720 g/L) is quoted lower by 5 yuan/tonne at 1,880-1,890 yuan/tonne. At Bayuquan port, 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 weigh 690-700 g/L; mildew 3-4%). At Shekou port, Guangdong, second-class old corn is quoted higher by 10 yuan/tonne at 1,760-1,800 yuan/tonne.
Corn marketing in North China is now hampered by continuous rainfalls. In addition, subsidy for planting corn in Heilongjiang has fallen to 25 yuan per Mu (1 Mu= 0.16 acre), as against 133.46 yuan last year, for which farmers may take a firmer stance to hoard their inventories, thus tightening the supply. Some Shandong processors continue to raise their purchasing price today, and corn price in coastal areas also remains steady to rise. Therefore, short-term corn market is predicted to stay stable to consolidate in fluctuation. However, buyers need to watch out for intensive sales with the completion of harvest in Northeast China. Besides, hog farmers are loath to replenish under the frequent outbreaks of African swine fever. Later focus is still on weather conditions in planted areas and sale sentiment of farmers.
Sorghum: Imported sorghum price stays stable to decline today. (US sorghum: raw sorghum remains unchanged at 2,130 in Nantong and 2,040-2,050 yuan/tonne in Guangdong, and goes down by 20 yuan/tonne to 2,130 yuan/tonne in Shanghai. Australian Barley: raw sorghum and dried sorghum go down by 90 yuan/tonne separately to 2,170 and 2,280 yuan/tonne in Tianjin, and remain unchanged at 2,250 and 2,300-2,320 yuan/tonne in Qingdao, and raw sorghum is down by 20 yuan/tonne to 2,300 in Shanghai. 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, 2,170 yuan/tonne in Qingdao and at 2,020-2,050 yuan/tonne in Guangdong; French barley is unchanged at 1,990-2,000 yuan/tonne in Nantong and 1,920 yuan/tonne in Guangdong; Canadian barley is unchanged at 2,050-2,080 yuan/tonne in Nantong; Ukainian barley is unchanged at 1,870 yuan/tonne in Guangdong).
Currently, domestic sorghum is running at low prices with its harvest completion and continuous marketing, and in this case, Australian sorghum has lost its price advantage. Besides, slack demand for sorghum at port has curbed spots shipments to some extent. In addition, sorghum and barley have lost their price advantage as energy feed substitutes of corn, which is also bearish to the grain market at port, leading to a stable fall today. Merely, there are still uncertainties in the trade war so that US sorghum import is costly to domestic importers, who choose to wait and show little interest at present. Under such circumstances, sorghum import volume has fallen to a recent-year low and its inventories at ports have dwindled to low levels, of which it is only 20,000 tonnes at main port, Guangdong. Therefore, the overall US sorghum market is resilient as traders holding stocks are quite willing to support the price, and short-term grain price will have limited room for declines. Later focus will be on trade news and corn market trends, which may provide some guidance to the grain market at port.
(USD $1=CNY 6.93)
