Today (Dec.6th), the market for grains in China is shown as follows:
Corn: Domestic corn price stays table to fall today. Prices mostly stay at a range of 1,944-2,080 yuan/tonne among Shandong processing enterprises, some down slightly by another 6-20 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 30% moisture is unchanged at 1,600 yuan/tonne, and 15% moisture of volume weight over 700 g/L is unchanged at 1,870-1,900 yuan/tonne; old corn is unchanged at 1,860 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn is unchanged at 1,870-1,900 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn goes down by 10 yuan/tonne at highs to 2,000-2,010 yuan/tonne.
Corn market is in bearish sentiment since China has agreed to import substantial amount of US agriculture product according to a consensus reached by the US and Chinese leaders at the meeting. In addition, the weather condition in Northeast now is favorable to corn marketing and drying. In this context, some processors have been lowering down their purchasing price. Meanwhile, some enterprises in Shandong also continue to reduce their quotation today. And corn price may go downside further once intensive sales occur. However, there is limited space for price declines as holders are still reluctant to sell while processors are in rigid need for purchase. 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, Nantong not offered, 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 is unchanged at 2,000 yuan/tonne in Hinggan League, and both raw sorghum and dried sorghum remain unchanged at 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 remains unchanged at 1,900 and dried sorghum with freight goes down by 20 yuan/tonne to 2,080 yuan/tonne in Qiqihar, and both raw and dried sorghum with freight remain unchanged at 2,000 and 2,100 yuan/tonne in Daqing, and dried sorghum goes down by 40 yuan/tonne at highs to 2,040-2,060 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).
Sorghum market is cracked down by a possible restart of US sorghum import, for China has agreed to purchase substantial US agriculture product according to the consensus reached by the US and Chinese leaders on the sidelines of G20 summit. Besides, port sorghum and barley, the energy feed substitutes of corn, have lost their price advantages so that light demand for sorghum has also weighed on the market shipment. Merely, port sorghum stock has dwindled to a low point, 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” policy, port barley may see a smaller import volume as its import cost will be raised largely. And this will give support to barley market at its bottom. 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 6.87)
