Today (Dec.4th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays table to fall today. The price is 1,956-2,080 yuan/tonne among Shandong processing enterprises, mostly unchanged and some down slightly by 6 yuan/tonne. At Jinzhou port, Liaoning, 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 hoes down by 20 yuan/tonne to 1,910 yuan/tonne; old corn is unchanged at 1,860 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn goes down by 20 yuan/tonne to 1,880-1,910 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn is 2,010-2,030 yuan/tonne, down by 10-20 yuan/tonne from yesterday.
Corn market is in bearish sentiment since China may import substantial amount of US agriculture product now that the US and Chinese leaders reached a consensus at the meeting. Corn price has fallen in response in Northeast regions and in coastal areas. And the weather condition in Northeast now is favorable to corn marketing and drying, so there is increasing risk for price falls once the intensive sale occurs. However, in North China Plain and Huang-huai Plain, corn still shows up in small volume under bad weather and holders remain in strong sentiment to hoard their stocks, while processors are in rigid need for purchase. Therefore, there is limited downside space for corn price. Generally speaking, corn will probably stay stable to post weak adjustments in the short term, and later focus is still on weather conditions and sale paces.
Sorghum: Imported sorghum price stays stable today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, 2,080 in Nantong, 2,070-2,080 in Zhangjiagang and 2,050 in Guangdong; dried sorghum is 2,230 in Nantong. Australian sorghum: raw sorghum is unchanged at 2,240 yuan/tonne in Tianjin, 2,250 in Shanghai, 2,250 in Nantong and 2,260 yuan/tonne in Qingdao; dried sorghum is unchanged at 2,340 in Tianjin, 2,350-2,360 in Nantong and 2,330 yuan/tonne in Qingdao. Domestic sorghum price keeps broadly steady with some declines 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 each go down by 40 yuan/tonne to 2,040-2,060 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 1,900 and 2,100 yuan/tonne in Qiqihar and 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).
Currently, port US sorghum and Australian sorghum markets are supported by their high import cost and tight supply so that traders are still hoarding their stocks to support the price. Additionally, import cost for port barley will be lifted substantially and its import volume may be reduced under the “anti-dumping” probe. So its supply and cost will continue to be bullish to the market. Merely, port sorghum market may be bearish if China returns to import US sorghum now that the US and Chinese leaders have reached a trade consensus at the meeting. Besides, port sorghum and barley, the energy feed substitutes of corn, have lost their price advantages, and their light demands have also cracked down on the market shipment. In the coexistence of the bull and the bear, port grain price remains stable today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.84)
