Today (Dec.12th), 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 1,928-2,080 yuan/tonne among Shandong processing enterprises, some down by another 4-6 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 1,890 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.
Expectations rose that China would open its grain imports now that the US and Chinese leaders had reached a consensus. Recently, some holders have sped up to cut down their corn stocks, whilst some planters have become anxious to sell out their parched corn in cash in Northeast regions. Therefore, new corn has been on the rise in the market gradually. Some processors in Northeast and North China now hold relatively adequate stocks so that they have continuously reduced the purchasing price, with a reduction of 4-6 yuan/tonne today among some Shandong enterprises. 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. But the price decline has slowed down in recent days, and some planters may be reluctant to sell again after this round of price falls; hence, most companies have tried to keep the price steady today in Northeast regions. In the near term, supply and demand pattern may turn looser before the release of any news, so corn price may still adjust to go weak. Later focus is still on weather conditions and marketing pace of planters.
Sorghum: Imported sorghum price stays stable to see some rises today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, goes up by 30-40 yuan/tonne to 2,110-2,120 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 to see some declines today: In Yuncheng, Shanxi, raw sorghum is unchanged at 2,100 yuan/tonne; in Hinggan League, inner Mongolia, raw sorghum and dried sorghum with freight remain unchanged at 1,940 and 2,100 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 there is no quotation in Qiqihar, Heilongjiange; in Daqing, Heilongjiang, raw and dried sorghum with freight remain unchanged at 2,000 and 2,100 yuan/tonne; in Heihe, dried sorghum with freight goes down by 80 yuan/tonne to 1,960 yuan/tonne ).
Barley: Barley price stays stable today. (Australian barley: raw sorghum is unchanged at 2,250 yuan/tonne in Qingdao and 2,200-2,210 in Nantong; Canadian barley: raw barley is unchanged at 2,130-2,140 yuan/tonne in Nantong; French barley: raw barley is unchanged at 2,080-2,090 yuan/tonne in Nantong; Ukrainian barley: raw sorghum is unchanged at 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. The bearish sentiment for restarting US sorghum imports is now cracking down sorghum market. 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 prop up the market. 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 with some fluctuations today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.89)
