Today (Nov.13th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to consolidate today. The price in Shandong processing companies is mainly at 1,940-2,110 yuan/tonne, mostly stopping rising to stabilize and some falling back by 6 yuan/tonne. At Jinzhou port, Liaoning, old corn is priced at 1,850 yuan/tonne (volume weight 700 g/L), up 40 yuan/tonne from yesterday; 2018 new corn with 30% moisture is priced higher by 40 yuan/tonne at 1,550 yuan/tonne, 15% moisture of volume weight over 700 g/L goes up 5-10 yuan/tonne at 1,880-1,885 yuan/tonne, and 15% moisture of volume weight over 720 g/L is unchanged at 1,890-1,900 yuan/tonne. At Bayuquan port, 2018 new corn is unchanged at 1,870-1,885 yuan/tonne (volume weight 700-720 g/L); old corn is unchanged at 1,780-1,820 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). At Shekou port, Guangdong, second-class old corn is quoted higher by 10 yuan/tonne at 1,980-2,000 yuan/tonne.
Some enterprises have increased their marketing volume as the weather gets clear in North China and the Huang-Huai plain, which forces local corn prices to stop rising to stabilize and some to fall. But planters still choose to hoard, while new corn in Northeast China has not gone marketing intensively, which contribute to supply tensions periodically. In the short term, such bullish fundamentals will continue to boost corn market. However, buyers need to watch out for risks from intensive sales with the completion of harvest in Northeast China in mid-to-late November. In addition, hog farmers are unwilling to make replenishment under 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 2,040-2,050 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 at 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 at 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 2,170 yuan/tonne in Qingdao and 2,160 yuan/tonne in Nantong; French barley: raw barley is unchanged at 1,990-2,000 yuan/tonne in Nantong and 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 1,870 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, 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. 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)
