Today (Dec.13th), 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 6-14 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 1,900 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.
There are rising expectations that China is to open its imports for US grains. In the meantime, it is said that there will be some 550,000 tonnes of corn to dock in December, after a shipload of Ukrainian corn arriving at Shandong port in the past few days. In addition, while some stockists have quickened their pace to handle the shipments so as to mitigate risks at the sight of clear weather in planting areas, processors now swarm to lower down corn purchasing price amid adequate inventories, with another reduction of 6-10 yuan/tonne today in Shandong. Besides, feed enterprises still take a cautious tactic in purchasing on account of the rampant African swine fever. However, planters have again showed reluctance to sell with this round of continuous declines, so the price decline has slowed down in Northeast amid decreasing sales and has even erased to edge up at Jinzhou port, Liaoning. In the near term, corn price will probably stay stable to go weak, and later focus will be on the game between the sale volumes and the demand.
Sorghum: Imported sorghum price stays stable today. (US sorghum: raw sorghum is unchanged at 2,150 yuan/tonne in Shanghai, 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 adjust in fluctuation 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 sorghum and dried sorghum with freight both go down by 50 yuan/tonne to 1,960 and 2,060 yuan/tonne; in Heihe, dried sorghum with freight goes up by 40 yuan/tonne to 2,000 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 prices broadly remain stable today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.87)
