Today (Nov.22nd), the market for grains in China is shown as follows:
Corn: Domestic corn prices are mostly stable and some post small adjustments today. The price
among Shandong processing enterprises is 1,954-2,080 yuan/tonne, mostly stable and some adjusting slightly. 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 1,890-2,000 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.
Currently, as planters and traders tend to hoard with bullish sentiment, coupled by weather effects, corn price will be propped up by effective supply dips and may still fluctuate to adjust at highs. But there may be some risks from intensive sales in Northeast regions if planters enter into a sale cycle in late November to early December after they finish harvesting their late corn. Besides, the upside potential of corn will be limited as its market is further curbed by slow feed consumption amid the contagious African swine fever. Later focus is still on weather conditions and sale paces.
Sorghum: Imported sorghum price stays 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 2,200, 2,250, 2,250 and 2,230-2,250 yuan/tonne in Tianjin, Shanghai, Nantong and Qingdao; dried sorghum is unchanged at 2,310 and 2,300-2,320 yuan/tonne in Tianjin and Qingdao. Domestic sorghum price keeps steady to rise today: In inner Mongolia, raw sorghum and dried sorghum with freight go higher by 40 yuan/tonne correspondingly to ,2040-2,060 and 2,120 yuan/tonne in Hinggan League, and remain unchanged at 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 go higher by 100 yuan/tonne and 160 yuan/tonne separately to 1,900 and 2,000 yuan/tonne in Qiqihar and higher by 60 yuan/tonne and 40 yuan/tonne separately to 1,960 and 2,040 yuan/tonne in Daqing).
Barley: Barley price stays stable to rise today. (Australian barley: raw sorghum is unchanged at 2,180-2,200 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 2,100 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,020 yuan/tonne 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).
Currently, importers tend to wait and show little interest in purchasing high-cost US sorghum so that import volume continues to slide at ports, of which Guangdong port, usually accounting for the lion’s share, has seen a stock under 10,000 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 port sorghum market. Besides, distributors and planters choose to hoard to support domestic sorghum price for a bullish outlook. Merely, sorghum market may turn bearish if import volume increases for an improving US-China trade relationship. In addition, sorghum and barley have lost their price advantages as energy feed substitutes of corn, which curbs port grain shipment. Generally speaking, port grain market is stable today and will likely steady to consolidate in the short term. Market participants can keep an eye on the trade war.
(USD $1=CNY 6.93)
