Today (Nov.26th), the market for grains in China is shown as follows:
Corn: Domestic corn price remains stable to rise today. The price is mainly at 1,968-2,080 yuan/tonne among Shandong processing companies, up 6-40 yuan/tonne from last Friday. At Jinzhou port, old corn is mainly priced at 1,860 yuan/tonne, unchanged from last Friday; 2018 new corn of 30% moisture goes higher by 40 yuan/tonne to 1,600 yuan/tonne (volume weight 700 g/L), 2018 new corn of 15% moisture with volume weight over 700 g/L goes higher by 10 yuan/tonne to 1,890-1,900 yuan/tonne, and 2018 new corn of 15% moisture with volume weight over 720 g/L goes higher by 15-35 yuan/tonne to 1,920-1,950 yuan/tonne. At Bayuquan port, 2018 new corn is priced higher by 10 yuan/tonne to 1,900-1,910 yuan/tonne (volume weight 700-720 g/L); old corn is priced higher by 10 yuan/tonne to 1,780-1,830 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). At Shekou port, Guangdong, second-class old corn is unchanged from last Friday at 1,980-2,000 yuan/tonne.
In northeast regions, farmers are still in strong bullish sentiment, making the sale pace of new corn remain slow. Seeing this, some processing companies have continued to raise the price, of which COFCO has raised another 50 yuan/tonne today in Gongzhuling, Jinlin. Buoyed by this, in North China, sellers are also hoarding to support the price. Some processing companies raised the price by 6-40 yuan/tonne over the weekend as the corn arrival at factories fell short of daily processing needs. Therefore, short-term corn price will still maintain to consolidate at highs amid scattered effective supply. 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 has been limited as its market is further curbed by slow feed consumption amid the contagious African swine fever. Later focus is still on sale paces.
Sorghum: Imported sorghum price stays stable today. (US sorghum: raw sorghum is unchanged at 2,130-2,150 yuan/tonne in Shanghai, 2,080 in Nantong, 2,070-2,080 in Zhangjiagang and 2,040-2,050 in Guangdong; dried sorghum is 2,240-2,250 in Nantong. Australian sorghum: raw sorghum is unchanged at 2,240 yuan/tonne in Tianjin, 2,250-2,280 in Shanghai, 2,250-2,280 in Nantong and 2,230-2,250 yuan/tonne in Qingdao; dried sorghum is unchanged at 2,350 in Tianjin and 2,350-2,360 in Nantong and 2,300-2,320 yuan/tonne in Qingdao. Domestic sorghum price keeps steady today: In inner Mongolia, raw sorghum and dried sorghum with freight remain unchanged at 2,040-2,060 and 2,120 yuan/tonne in Hinggan League, and 2,060 and 2,200 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 1,900 and 2,000 yuan/tonne in Qiqihar and 1,960 and 2,040 yuan/tonne in Daqing).
Barley: Barley price goes up today. (Australian barley: raw sorghum goes higher by 50 yuan/tonne to 2,200 yuan/tonne in Qingdao; Canadian barley: raw barley is unchanged at 2,100 yuan/tonne in Nantong; French barley: raw barley goes up by 40 yuan/tonne to 2,060 yuan/tonne in Nantong; Ukrainian barley: raw sorghum is 1,920-1,940 yuan/tonne in Guangdong).
Currently, import cost for US sorghum remains at a historical high level so that importers have no intention of purchasing. In this case, import volume of port US sorghum keeps sliding, under which Guangdong port, usually accounting for the lion’s share, has seen a record low of 4,000 tonnes, not to mention the stock bottom at other ports. Additionally, the purchase volume for Australian sorghum has been scarce as its import cost also remains high. Therefore, sorghum market is now supported by holders’ reluctance to sell. In the meantime, importers are trying to lifting port barley price for its high cost and stock shortage. Therefore, port grain price stays stable to rise today. Merely, port sorghum market may fall negative for import will be resumed if China and the US manage to improve their trade relationships. In addition, sorghum and barley, as energy feed substitutes of corn, have lost their price advantages, which curbs port grain shipment. Generally speaking, port barley and sorghum market will likely steady to consolidate in the short term. And participants can keep an eye on the US-China trade spat.
(USD $1=CNY 6.95)
