Today (Nov.14th), 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 is mainly at 1966-2080 yuan/tonne, where it goes down by 4-20 yuan/tonne when the sales volume is large and goes up by 10-20 yuan/tonne when the volume is small. At Jinzhou port, Liaoning, old corn is unchanged at 1,850 yuan/tonne (volume weight 700 g/L); 2018 new corn goes higher by 10 yuan/tonne to 1,560 yuan/tonne for 30% moisture, by 5-10 yuan/tonne to 1,880-1,890 yuan/tonne for 15% moisture of volume weight over 700 g/L and also by 5-10 yuan/tonne to 1,900-1,905 yuan/tonne for 15% moisture of volume weight over 720 g/L. At Bayuquan port, Liaoning, 2018 new corn is unchanged at 1,870-1,885 yuan/tonne (volume weight 700-720 g/L); old corn is also unchanged at 1,780-1,820 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). At Shekou port, Guandong, second-class old corn is unchanged at 1,980-2,000 yuan/tonne.
Some planters and traders show a looser mood for hoarding as the weather gets clear. Today some enterprises take a flexible tactic in purchasing: when the sales volume is large, they will lower down the price slightly; but when small, they will continue to lift the price. But the sentiment for hoarding is still strong, while new corn from Northeast China is still in small batches, which contributes to a temporarily tight supply; thus, corn market is propped up and may extend to consolidate at high prices. However, there may be some risks from intensive sales in late November with the completion of harvest in Northeast China. In addition, corn market may find it hard to go upward as feed companies remain prudent in purchasing due to the frequent outbreaks of African swine fever. Later focus is still on weather conditions in planted areas and sale paces among farmers.
Sorghum: Imported sorghum price is stable today. (US sorghum: raw sorghum is unchanged at 2,130 yuan/tonne in Shanghai and 2,040-2,050 yuan/tonne in Guangdong. Australian sorghum: raw sorghum and dried sorghum are unchanged respectively at 2,170 and 2,280 yuan/tonne in Tianjin and 2,230 and 2,300-2,320 yuan/tonne in Qingdao, and raw sorghum is 2,250 yuan/tonne in Shanghai. 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 2,000 and 2,140 yuan/tonne in Chifeng; in Changchun, Jilin, dried sorghum with freight is 2,240 yuan/tonne; and in Heilongjiang, raw sorghum and dried sorghum with freight remain unchanged at 1,800 and 1,840-1,860 yuan/tonne in Qiqihar and 1,900-1,920 and 2,000 yuan/tonne in Daqing).
Barley: Barley price stays stable to rise today. (Australian barley: raw barley is unchanged at 2,150 yuan/tonne in Qingdao, 2,160 yuan/tonne in Nantong and 2,050 yuan/tonne in Guangdong; French barley: raw barley is unchanged at 1,990-2,000 yuan/tonne in Nantong and 1,920-1,930 yuan/tonne in Guangdong; Canadian barley: raw barley is unchanged at 2,050-2,080 yuan/tonne in Nantong; Ukainian barley: raw barley is 1,880-1920 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, with the main port, Guangdong, only holding a few thousand tonnes in stock. Meanwhile, import cost for Australian sorghum is also brought higher sharply by the droughts, so holders are still supporting the price firmly on concerns over the difficulty to replenish such low-cost supply. Therefore, the overall sorghum market is propped up at its bottom. On the other hand, barley is now in short supply at port due to its high cost, which is bullish to the overall barley market. Merely, domestic sorghum is running at low prices amid a glut 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 cracking down on the grain market at port. In the coexistence of the bull and the bear, grain market at port is stable today, and will likely remain stable in the near term.
(USD $1=CNY 6.95)
