Today (Nov.20th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to post narrow adjustments today. The price in Shangdong processing companies is mainly at 1,954-2,080 yuan/tonne, some falling another 4-12 yuan/tonne from yesterday. At Jinzhou port, Liaoning, old corn is unchanged 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 unchanged 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.
In Northeastern areas, enterprises still see a small volume on the market as planters are unwilling to sell on account of increasing planted costs and bullish later market, so some enterprises raise their purchasing price by 10-60 yuan/tonne in Jilin and Heilongjiang. However, there are still some risks of intensive sales from late November to early December as more and more corn dryers are opened. And in North China, corn sellers become more willing to clear their stock at high prices as the weather broke, so enterprises take the chance to lower down their purchasing price by 6-10 yuan/tonne today. 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 price stops rising to steady recently. On the whole, short-term corn price may fluctuate to adjust at highs, and later focus is still on weather in production areas and sales pace of planters.
Sorghum: Imported sorghum price stays stable to rise 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 and dried sorghum both go higher by 30 yuan/tonne to 2,200 and 2,310 yuan/tonne in Tianjin and remain unchanged at 2,230-2,250 and 2,300-2,320 yuan/tonne in Qingdao, and raw sorghum is unchanged at 2,250 and ,2,250 yuan/tonne in Shanghai and Nantong, respectively. Domestic sorghum price keeps steady today: In inner Mongolia, raw sorghum and dried sorghum with freight remain unchanged at 2,000 and 2,080 yuan/tonne in Hinggan League, and 2,000-2,040 and 2,160 yuan/tonne in Chifeng; 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 2,160 in Nantong, 2,150-2,170 yuan/tonne in Qingdao and 2,050 yuan/tonne in Guangdong; Canadian barley: raw barley is unchanged at 2,100 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,010 in Nantong and 1,920-1,930 yuan/tonne in Guangdong; Ukrainian barley: raw sorghum is unchanged at 1,880-1,920 yuan/tonne in Guangdong).
On account of ongoing US-China trade frictions, importers tend to wait and show little interest in purchasing high-cost US sorghum so that import volume continues to slip at ports, of which the main port, Guangdong, has seen a record low stock of 7,000 tonnes. In this case, holders show strong sentiment for hoarding to support the price. In addition, import cost for Australian sorghum also remains at a high level, which also props up sorghum market at the bottom. Besides, subject to China’s anti-dumping probe, import cost for Australian barley may be lifted substantially later, so the market may get support from a reducing import volume. Overall, grain prices at port remain stable to rise today. Merely, sorghum and barley have lost their price advantages as energy feed substitutes of corn, which curbs grain shipment at port. Generally speaking, sorghum and barley market at port will probably stay stable to consolidate in the short term.
(USD $1=CNY 6.94)
