Today (Nov.12th), the market for grains in China is shown as follows:
Corn: Domestic corn prices continue to increase today. The price in Shandong processing enterprises is 1,940-2,110 yuan/tonne, up 10-60 yuan/tonne from last Friday. At Jinzhou port, Liaoning, 2018 new corn remains unchanged from last Friday at 1,510 yuan/tonne for 30% moisture, 1,870-1,880 yuan/tonne for 15% moisture of volume weight over 700 g/L, and 1,890-1,900 yuan/tonne 15% moisture of volume weight over 720 g/L. At Bayuquan port, Liaoning, 2018 new corn is quoted higher by 10 yuan/tonne to 1,870-1,885 yuan/tonne (volume weight over 700-720 g/L); old corn is quoted higher by 20 yuan/tonne to 1,780-1,820 yuan/tonne (volume weight over 690-700 g/L, mildew 3-4%). At Shekou port, Guangdong, second-class old corn is 1,980-1,990 yuan/tonne, up 10-20 yuan/tonne from last Friday.
Corn supply gets tight at present, for Farmers are still reluctant to sell in spite of the clear weather in Huang-Huai Plain, and new corn from Northeast China has not presented the intensive sales. In addition, farmers has taken 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. Therefore, some enterprises have continued to raise their price in Northeast and North China, with an overall rise of 10-20 yuan/tonne, and corn price at ports also extend steady rises. In the short term, the bullish fundamentals will continue to boost the market. However, buyers need to watch out for intensive sales with the completion of harvests 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 2,040-2,050 yuan/tonne in Guangdong. Australian sorghum: raw sorghum and dried sorghum is unchanged respectively at 2,170 and 2,280 yuan/tonne in Tianjin, and at 2,230 and 2,300-2,320 yuan/tonne in Qingdao. Domestic sorghum price keeps steady to rise: In inner Mongolia, raw sorghum and dried sorghum with freight both remain unchanged at 1,960 and 2,060 yuan/tonne in Hinggan League, and each goes up 40 yuan/tonne to 2,000 and 2,140 yuan/tonne in Chifeng; in Heilongjiang, raw sorghum and dried sorghum with freight remain unchanged at 1,800 and 1,840-1,860 yuan/tonne in Qiqihar, and unchanged at 1,900-1,920 and 2,000 yuan/tonne).
Barley: Barley price stays stable to rise today. (Australian barley: raw barley is unchanged at 2,170 yuan/tonne in Qingdao, higher by 10 yuan/tonne to 2,160 yuan/tonne in Nantong; French barley: raw barley is unchanged at 1,990-2,000 yuan/tonne in Nantong and up 10 yuan/tonne to 1,930 yuan/tonne in Guangdong; Canadian barley: raw barley is unchanged at 2,050-2,080 yuan/tonne in Nantong; Ukainian barley: raw barley is quoted higher by 10 yuan/tonne at 1,870 yuan/tonne in Guangdong).
Currently, US sorghum import is quite costly amid the ongoing trade spat so that traders show little interest in purchasing. In this context, its import volume at ports keeps shrinking recently and its inventory has dwindled to 12,000 tonnes at main port, Guangdong. In the meantime, holder are still supporting the price firmly, for import cost for Australian sorghum is also brought higher sharply by the droughts. Therefore, the overall sorghum market is propped up. On the other hand, barley is now in short supply at port due to its high cost, which is bullish to its own market. In addition, corn price at port also increases, helping support the grain market at the bottom. Therefore, grain market at port stays stable to rise today. Merely, domestic sorghum is running at low prices as it has been largely harvested and gone marketing, under which Australian sorghum has lost its price advantage. Besides, sorghum and barley have lost their price advantage as energy feed substitutes of corn, which is bearish to grain market at port and limits its upward space. Later focus will be on domestic sorghum and corn sales, which may provide some guidance to the grain market at port.
(USD $1=CNY 6.96)
