Today is 03/29/2024

Daily Review on Grain Market in China

2018-12-11 www.cofeed.com
      Today (Dec.11th), the market for grains in China is shown as follows:
   
      Corn: Domestic corn price stays stable to show weak fluctuations 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 is unchanged at 1,560 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes up by 10 yuan/tonne to 1,880 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 is unchanged at 1,980-2,000 yuan/tonne.

      Bearish mood keeps simmering in corn market, for expectations rose that China would open its import markets now that the US and Chinese leaders had reached a consensus. The marketing volume of new corn has gradually increase as some holders become less willing to hoard their stocks, so some processors continue to reduce their purchasing price in Northeast and North China. In addition, feed enterprises now take a careful attitude in purchasing amid the outbreaks of African swine fever and price declines of corn in planting areas. In the near term, corn price will keep stable to post weak adjustments under supply pressure. But there will be little room for downsides, for the sale peak point is still unobserved when planters are still hoarding to prop up the price, and old corn price has also given support to corn market at the bottom. Later focus is still on weather conditions and marketing pace of planters. 

      Sorghum: Imported sorghum price stops falling to stay stable today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, 2,080 in Nantong, and not offered in Zhangjiagang and Guangdong. Australian sorghum: raw sorghum is unchanged at 2,230 yuan/tonne in Tianjin, 2,180-2,220 in Shanghai, 2,250 in Nantong and 2,180-2,200 yuan/tonne in Qingdao; dried sorghum is unchanged at 2,340 in Tianjin, 2,350-2,360 in Nantong and 2,280-2,330 yuan/tonne in Qingdao. Domestic sorghum price keeps broadly steady today: In Yuncheng, Shanxi, raw sorghum is unchanged at 2,100 yuan/tonne; there is no quotation in Hinggan League, inner Mongolia; 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 remain unchanged at 2,040 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 2,040 yuan/tonne ).

      Barley: Barley price stays stable with some rises today. (Australian barley: raw sorghum is unchanged at 2,250 yuan/tonne in Qingdao; Canadian barley: raw barley is unchanged at 2,130-2,140 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,070-2,080 yuan/tonne in Nantong; Ukrainian barley: raw sorghum goes up by 20 yuan/tonne to 1,980 yuan/tonne in Guangdong).

      Expectations rose that China would open its import markets now that the US and Chinese leaders had reached a consensus on the sidelines of G20 summit. The supply gap will be enlarged again if US sorghum imports get restarted. In this context, port sorghum market is dragged down by bearish sentiment.  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, port sorghum has nearly run out of stock, which will to some extent restrict its room for price adjustments. 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 6.90)