Today (Nov.16th), the market for grains in China is shown as follows:
Corn: Domestic corn prices are mostly stable and some post consolidations. The price in Shandong areas is mainly at 1,966-2,080 yuan/tonne, mostly stable and some mixed. At Jinzhou port, Liaoning, old corn is priced higher by 10 yuan/tonne at 1,860 yuan/tonne (volume weight 700 g/L); 2018 new corn is unchanged at 1,560 yuan/tonne for 30% moisture, 1880-1890 yuan/tonne for 15% moisture with volume weight over 700 g/L and 1,900-1,905 yuan/tonne for 15% moisture with volume weight over 720 g/L. At Bayuquan port, Liaoning, 2018 new corn is unchanged at 1,880-1,895 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 unchanged at 1,980-2,000 yuan/tonne.
While corn is now in tight supply, which is contributed to rainy and snowy conditions in planted areas and farmers and traders willingness to hoard their stockpiles, downstream companies are strong need to replenish their low inventories. Therefore, corn market is bolstered. However, there may be risks of intensive sales among planters amid increasing corn dryers opened for the harvest completion in Northeast China. In addition, frequent outbreaks of the African swine fever is unfavorable to the feed consumption growth. Hence, there is limited room for corn to go upward. Later focus is till on weather in production areas and sales pace, and planters are suggested to sell on rallies timely to realize profits rather than just hoarding.
Sorghum: Imported sorghum price is stable today. (US sorghum: raw sorghum is unchanged at 2,130 yuan/tonne in Shanghai, 2,080 in Nantong and 2,040-2,050 in Guangdong. Australian sorghum: raw sorghum is unchanged at 2,170, 2,250 and 2,230-2,250 yuan/tonne in Tianjin, Shanghai and Qingdao; dries sorghum is unchanged at 2280 and 2,300-2,320 yuan/tonne in Tianjin and Qingdao. Domestic sorghum price keeps steady to rise: In inner Mongolia, raw sorghum and dried sorghum with freight 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 today. (Australian barley: raw barley is unchanged at 2,160 yuan/tonne in Nantong, 2,150-2,170 yuan/tonne in Qingdao and 2,050 yuan/tonne in Guangdong; Canadian barley: raw barley is unchanged at 2,050-2,080 yuan/tonne in Nantong; French barley: raw barley is unchanged at 1,990-2,000 yuan/tonne in Nantong and 1,920-1,930 yuan/tonne in Guangdong; Ukainian barley: raw barley is 1,880-1920 yuan/tonne in Guangdong).
Importers show little interest in US sorghum as its import cost is high when there is uncertainty in the US-China trade war. In this context, import volume at port keeps slipping, with main port, Guangdong, only holding less than 10,000 tonnes in stock. Therefore, sorghum market is now propped up at its bottom as holders are hoarding to support the price on concerns over the difficulty to replenish such lost-cost stocks. Besides, barley market is bullish due to the high costs and tight inventories at port. Moreover, processing enterprises in Northeast China and North China have continued to raise their purchasing prices recently so that corn price is buoyed to remain firm on distribution market and at port, which is beneficial to the overall grain market at port. However, domestic sorghum is running at low prices due to the oversupply after its harvest completion, under which Australian sorghum has lost its price advantage. Furthermore, sorghum and barley also lost their price advantages as energy feed substitutes of corn, which curbs grain shipment at port. As the bull and the bear walk side-by-side, sorghum and barley market at port is predicted to run stable in the near term.
(USD $1=CNY 6.94)
