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Daily Review on Grain Market in China

2018-12-10 www.cofeed.com
      Today (Dec.10th), the market for grains in China is shown as follows:
   
      Corn: Domestic corn price stays stable to go weak in fluctuation today. Prices mostly stay at a range of 1,934-2,080 yuan/tonne among Shandong processing enterprises, some down by another 6-10 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 30% moisture goes down by 40 yuan/tonne to 1,560 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes higher by 10-20 yuan/tonne to 1,870 yuan/tonne; old corn is unchanged at 1,840 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn is unchanged at 1,870-1,880 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn goes down by 10-20 yuan/tonne at highs to 1,980-2,000 yuan/tonne.

      Bearish mood keeps simmering in corn market, for China is expected to open its markets for imports from the US according to a consensus reached by the two countries. In Northeast, supply continues to go loose as there is an increasing amount of new corn whilst some traders are actively in handling auction old corn. Today, some processors continue to reduce their purchasing price both in Northeast and North China. In addition, the rampant African swine fever is also unfavorable to the growth of feed consumption. And the price has fallen in production areas. Therefore, some feed enterprises become cautious in purchase in distribution markets. Therefore, corn market is seeing growing fundamental pressures now. Generally speaking, short-term corn price will decline further as the planters and traders mend their pace to sell, and later focus is still on weather conditions and marketing pace. 

      Sorghum: Imported sorghum price steps down today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, not offered Nantong, 2,070-2,080 in Zhangjiagang and 2,050 in Guangdong. Australian sorghum: raw sorghum is downs by 10 yuan/tonne to 2,230 yuan/tonne in Tianjin, down by 50 yuan/tonne to 2,180-2,220 yuan/tonne in Shanghai, unchanged at 2,250 in Nantong and down by 70 yuan/tonne to 2,260 yuan/tonne in Qingdao; dried sorghum is unchanged at 2,340 in Tianjin, 2,350-2,360 in Nantong and down by 40 yuan/tonne to 2,280-2,300 yuan/tonne in Qingdao. Domestic sorghum price keeps broadly steady with some declines today: In Yuncheng, Shanxi, raw sorghum goes down by 20 yuan/tonne to 2,100 yuan/tonne; in Hinggan League, inner Mongolia, raw sorghum goes down by 30 yuan/tonne to 1,920-1,940 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 2,040-2,080 and 2,160 yuan/tonne; in Changchun, Jilin, dried sorghum with freight is unchanged at 2,240 yuan/tonne; and in Qiqihar, Heilongjiang, dried sorghum with freight goes down by 40 yuan/tonne to 2,040 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 goes down by 20 yuan/tonne to 2,040 yuan/tonne ).

      Barley: Barley price stays stable to rise today. (Australian barley: dried sorghum is 2,250 yuan/tonne in Qingdao; Canadian barley: raw barley goes higher by 10 yuan/tonne to 2,130-2,140 yuan/tonne in Nantong; French barley: raw barley goes higher by 10 yuan/tonne to 2,080-2,090 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. However, 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. Today, port barley outperforms sorghum to a large extent. And short-term barley is predicted to present resilience with stronger trends, while sorghum will likely fluctuate to fall. 

(USD $1=CNY 6.88)