Today (Nov.9th), the market for grains in China is shown as follows:
Corn: Domestic corn price continue to rise in some areas today. The price in Shandong processing companies prevails at 1,940-2,060 yuan/tonne, up 10-30 yuan/tonne from yesterday. At Jinzhou port, Liaoning, old corn is mainly 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; 2018 new corn with 15% moisture goes up by 25-30 yuan/tonne at 1,870-1,880 yuan/tonne for volume weight over 700 g/L and up by 10 yuan/tonne at 1,890-1,900 yuan/tonne for volume weight over 720 g/L. At Bayuquan port, 2018 new corn is quoted higher by 10 yuan/tonne at 1,850-1,875 yuan/tonne (volume weight 700-720 g/L), and 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 1,960-1,980 yuan/tonne.
Corn marketing is now hampered by severe weather conditions like rainfalls and hazes in Huang-Huai Plain and in North China and rain and snow in Northeast. Besides, farmers may take a firmer stance in hoarding after the subsidy for planting corn in Heilongjiang has fallen to 25 yuan per Mu (1 Mu= 0.16 acre) from 133.46 yuan last year. Facing such tight supply, some Shandong enterprises continue to raise their purchasing price today and the price at port also stabilize to rise. In the short term, corn price will go strong due to periodically tight supply. 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 is stable today. (US sorghum: raw sorghum is unchanged at 2,130, 2,130 and 2,040-2,050 yuan/tonne in Nantong, Shanghai and Guangdong, respectively. Australian sorghum: raw sorghum is unchanged at 2,170, 2,250 and 2,300 yuan/tonne in Tianjin, Qingdao and Shanghai, respectively; dried sorghum is 2,280 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).
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; Ukairanian barley is unchanged at 1,870 yuan/tonne in Guangdong).
Currently, importers show no interest in purchasing US sorghum due to the uncertain future of the trade war, so import volume keeps declining at port in recent two days, leading to a lowest stock of 20,000 tonne at main port, Guangdong. In addition, Australian sorghum import is also costly due to drought conditions. In this context, holders tend to hoard to support the price on worry of the difficulty to replenish low-cost stock, which in turn gives support to sorghum market at its bottom. But in the meantime, domestic sorghum is running at low prices with its harvest completion and continuous marketing so that Australian sorghum has lost its price advantage. Besides, sorghum and barley have lost their price advantage as energy feed substitutes of corn, which curbs grain shipment at ports. In the coexistence of the bull and the bear, grain market at port is stable today, and sorghum market will likely stabilize to go weak in the near term.
(USD $1=CNY 6.95)
