Today (Nov.19th), the market for grains in China is shown as follows:
Corn: Domestic corn price remains stable to go weak today. The price in Shandong processing enterprises is mainly at 1,954-2,080 yuan/tonne, down 6-30 yuan/tonne from last Friday. At Jinzhou port, Liaoning, old corn is unchanged from last Friday at 1,860 yuan/tonne (volume weight 700 g/L); 2018 new corn with 30% moisture is unchanged at 1,560 yuan/tonne, 15% moisture of volume weight over 700 g/L is unchanged at 1,880-1,890 yuan/tonne, and 15% moisture of volume weight over 720 g/L is higher by 5-10 yuan/tonne at 1,905-1,915 yuan/tonne. 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.
Corn sellers become willing to clear their stock at high prices as the weather broke in North China, so enterprises take the chance to lower down their purchasing price marginally, with a total of 10-20 yuan/tonne over the weekend. Besides, corn price in Northeast China is stable today as enterprises are in wait-and-see mood expecting a possible sale period in late November to early December in view of increasing corn dryers opened for the harvest completion in Northeast China. There may be risks of intensive sales from farmers in later market. In addition, the spread of the African swine fever is unfavorable to corn feed consumption growth as feed enterprises are inactive in purchasing. Hence, corn market may stop rising to fluctuate in the short run. Later focus is still 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; dried sorghum is unchanged at 2,280 and 2,300-2,320 yuan/tonne in Tianjin and Qingdao. Domestic sorghum price keeps steady to rise: In inner Mongolia, raw sorghum goes higher by 40 yuan/tonne to 2,000 and 2,000-2,040 yuan/tonne in Hinggan League and Chifeng, and dried sorghum with freight goes higher by 20 yuan/tonne to 2,080 and 2,160 yuan/tonne correspondingly; in Changchun, Jilin, dried sorghum with freight is unchanged at 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 sorghum is unchanged at 2,150-2,170 yuan/tonne in Qingdao and 2,050 yuan/tonne in Guangdong; French barley: raw barley is unchanged at 1,920-1,930 yuan/tonne in Guangdong; Ukrainian barley: raw sorghum is unchanged at 1,880-1,920 yuan/tonne in Guangdong).
Currently, importers show little interest in purchasing high-cost US sorghum so that imported volume of sorghum keeps shrinking at ports, of which main port, Guangdong, only holds 7,000 tonnes in stock. As holders are quite willing to support the price, coupled by the high import cost of Australian sorghum, the overall market is propped up. Besides, China’s Commerce Ministry has officially announced the initiation of anti-dumping investigation against Australian sorghum, whose import volume may be further curbed later. In this context, sorghum market is propped up by its bullish supply fundamentals and cost. But sorghum and barley have 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, grain price is stable at port today, and sorghum and barley market at port is predicted to steady to fluctuate fractionally in the near term.
(USD $1=CNY 6.94)
