Today (Dec.3rd), the market for grains in China is shown as follows:
Corn: Domestic corn price posts narrow adjustments steadily today. The price is mainly unchanged at 1,956-2,080 yuan/tonne among Shandong processing enterprises. 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 1,920-1,980 yuan/tonne. At Shekou port, Guangdong, second-class old corn is unchanged at 2,010-2,030 yuan/tonne.
Corn sale is stumbling under unfavorable weather conditions including haze in North China Plain and Huang-huai Plain, as well as rainfalls and temperature declines in Henan and Shandong. Meanwhile, most planters and traders still show reluctance to sell, which is also bullish to corn market. Corn purchasing price mostly erased declines to stay stable in North China as the volume arrived at factories was decreasing over the weekend. However, China and the US have reached a trade consensus, where China has agreed to start purchasing substantial agricultural product from US. This has brought some negative sentiment to corn market, and in the long run, domestic corn consumption will fall bearish if imports of corn and its substitutes are open again. In addition, Northeast planters are expected to enter into corn sale cycles heading into December. Besides, corn feed consumption is hard to grow under ongoing spread of the African swine fever. In general, corn price will likely stay stable to show narrow adjustments in the short run, and later focus is still on weather conditions in production areas and sale paces among planters.
Sorghum: Imported sorghum price trades mixed today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, 2,080 in Nantong, 2,070-2,080 in Zhangjiagang and 2,050 in Guangdong; dried sorghum goes lower by 10 yuan/tonne to 2,230 in Nantong. Australian sorghum: raw sorghum is unchanged at 2,240 yuan/tonne in Tianjin, 2,250 in Shanghai and 2,250 in Nantong and goes higher by 10 yuan/tonne to 2,260 yuan/tonne in Qingdao; dried sorghum goes lower by 10 yuan/tonne to 2,340 in Tianjin, remains unchanged at 2,350-2,360 in Nantong and goes higher by 10 yuan/tonne to 2,330 yuan/tonne in Qingdao. Domestic sorghum prices mostly keep steady and some increase today: In Yuncheng, Shanxi, raw sorghum is unchanged at 2,120 yuan/tonne; 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 2,080-2,100 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 remains unchanged at 1,900 and and dried sorghum with freight goes higher by 40 yuan/tonne to 2,100 yuan/tonne in Qiqihar, and both raw sorghum and dried sorghum remain unchanged at 2,000 and 2,100 yuan/tonne in Daqing, and dried sorghum is unchanged at 2,040-2,100 yuan/tonne in Heihe).
Barley: Barley price stays stable today. (Australian barley: dried sorghum is unchanged at 2,300 yuan/tonne in Qingdao; Canadian barley: raw barley is unchanged at 2,120-2,130 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,070-2,080 yuan/tonne in Nantong; Ukrainian barley: raw sorghum is unchanged at 1,960 yuan/tonne in Guangdong).
The US and Chinese leaders have reached consensus to suspend further tariffs on the sidelines of G20 summit. In this context, sorghum import may be resumed, which is bearish to domestic sorghum market. In addition, port sorghum and barley, the energy feed substitutes of corn, have lost their price advantages, and their light soft demands have also cracked down on the spots market. Merely, port sorghum stock has declined to a lower level, of which Guangdong port, usually accounting for the lion’s share, has seen a record low of 1,000 tonnes in stock. Therefore, sorghum holders are unwilling to sell at the moment. In addition, subject to the “anti-dumping” probe, port barley may see a smaller import volume as its import cost will be lifted largely. And this will give support to barley market at its bottom. In the coexistence of the bull and the bear, port grain price is in a mixing state today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.90)
