Today (Nov.28th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays stable to consolidate today. The price is mainly at 1964-2080 yuan/tonne among Shandong processing companies, mostly stable and some retracing slightly by 4-10 yuan/tonne. 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 1,600 yuan/tonne, 15% moisture of volume weight over 700 g/L is unchanged at 1,890-1,900 yuan/tonne, and 15% moisture of volume weight over 720 g/L is unchanged at 1,920-1,950 yuan/tonne. At Bayuquan port, 2018 new corn is unchanged at 1,900-1,910 yuan/tonne (volume weight 700-720 g/L); old corn is unchanged at 1,800-1,830 yuan/tonne (volume weight 690-700 g/L, mildew 3-4%). At Shekou port, Guangdong, second-class old corn is unchanged at 2,000-2,020 yuan/tonne.
Subject to the sentiment of hoarding for bullish market among farmers, new corn sales are still slow in Northeastern regions, so some surrounding processing enterprises and storage companies employ themselves actively in purchasing, pushing a price hike of 30-100 yuan/tonne today. Corn price will edge up easily in Northeast before periodical supply tensions ease. But in Shandong, due to an increasing amount of corn from Northeast and local sellers, local corn price has dropped slightly by 4-10 yuan/tonne. Besides, planters are expected to enter into a sale cycle heading into December after harvesting their late corn. Additionally, there is limited upside range for corn as its market is curbed by slow feed consumption amid the contagious African swine fever. Later focus is still on sale paces among Northeast planters and marketing amount in North regions.
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 in Nantong and 2,230-2,250 yuan/tonne in Qingdao; dried sorghum is unchanged at 2,350 in Tianjin, 2,350-2,360 in Nantong and 2,300-2,320 yuan/tonne in Qingdao. Domestic sorghum price goes up today: raw sorghum and dried sorghum with freight remain unchanged at 2,040-2,060 and 2,120 yuan/tonne in Hinggan League, inner Mongolia; and raw sorghum goes higher by 20 yuan/tonne to 2,080-2,100 and dried sorghum with freight remains unchanged at 2,200 yuan/tonne in Chifeng; dried sorghum with freight is unchanged at 2,240 yuan/tonne in Changchun, Jilin; raw sorghum remains unchanged at 1,900 and dried sorghum with freight goes higher by 60 yuan/tonne to 2,060 yuan/tonne in Qiqihar, Helongjiang, and raw sorghum goes higher by 40 yuan/tonne to 2,000 and dried sorghum with freight goes higher by 60 yuan/tonne to 2,100 yuan/tonne in Daqing).
Barley: Barley price stays stable today. (Australian barley: raw sorghum is unchanged at 2,200 yuan/tonne in Qingdao; Canadian barley: raw barley is unchanged at 2,100 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,060 yuan/tonne in Nantong; Ukrainian barley: raw sorghum is unchanged at 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 for purchase. 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 in stock. 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 support port barley price for its high cost and stock shortage. Merely, sorghum and barley, as energy feed substitutes of corn, have lost their price advantages, which curbs port grain shipment. In the coexistence of the bull and the bear, port grain market stays stable today, and port barley and sorghum market will likely steady to consolidate in the short term.
(USD $1=CNY 6.95)
