Today (Dec.7th), the market for grains in China is shown as follows:
Corn: Domestic corn price continues to fall today. Prices mostly stay at a range of 1,934-2,080 yuan/tonne among Shandong processing enterprises, some down by another 10-20 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.
Bearish mood keeps simmering in corn market, for China has agreed to import substantial agriculture products from the US according to a consensus reached by the two countries. In Northeast, supply continues to go loose amid an increasing amount of new corn, whilst some traders are actively in handling auction old corn, so corn will see growing risks of price declines. Today, some processors have reduced their purchasing price gain both in Northeast and North China. Meanwhile, the rampant African swine fever is also unfavorable to the growth of feed consumption. In addition, the price has fallen in production areas. Therefore, some feed enterprises become cautious in purchase in distribution markets. Under the periodical supply pressure, corn price may continue to go lower in the short term, and later focus is still on weather conditions in planted areas as well as sale sentiment and marketing pace of planters.
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 Hinggan League, inner Mongolia, raw sorghum goes down by 40 yuan/tonne to 1,960 yuan/tonne and dried sorghum is unchanged at 2,060 yuan/tonne; in Chifeng, inner Mongolia, both raw sorghum and dried sorghum remain unchanged at 2,040-2,060 and 2,160 yuan/tonne; in Changchun, Jilin, dried sorghum with freight is unchanged at 2,240 yuan/tonne; and in Qiqihar, Heilongjiang, raw sorghum and dried sorghum with freight remain unchanged at 1,900 and 2,080 yuan/tonne; in Daqing, Heilongjiang, raw and dried sorghum with freight remain unchanged at 2,000 and 2,100 yuan/tonne; in Heihe, dried sorghum is unchanged at 2,060 yuan/tonne).
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 game of the supply and the demand, 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)
