Today (Dec.17th), the market for grains in China is shown as follows:
Corn: Domestic corn price continues to go down today. Prices mostly stay at a range of 1,922-2,054 yuan/tonne among Shandong processing enterprises, down by 4-20 yuan/tonne partially from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture is 1,750 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes down by 10 yuan/tonne from last Friday to 1,870 yuan/tonne; old corn goes up by 30 yuan/tonne to 1,870 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 2,000 yuan/tonne.
Corn supply has been loosening as planters have quickened their sale paces and stockists have sped up to handle their stocks, whilst processors have held adequate inventories and even have full storehouses in North China; under the continued growing arrivals to factories, processors continue to lower down their purchasing price, with a reduction of 4-10 yuan/tonne today. In addition, corn feed consumption is also restricted when feed companies are cautious in purchasing since 96 cases of the African swine fever have been reported so far. Corn market is in short of bullish support, for its supply continues to expand and its demand growth fails to meet the expectations, so short-term corn will probably continue to go weak. Market participants can keep an eye on the competition between sale paces and demand, as well as the outcomes in the US-China trade talks. Once the grain import is resumed, domestic corn market will fall bearish substantially.
Sorghum: Imported sorghum price stays stable with some rises today. (US sorghum: raw sorghum is unchanged at 2,120 yuan/tonne in Shanghai, 2,100-2,120 in Nantong, and not offered for out of stocks in Zhangjiagang and Guangdong. Australian sorghum: raw sorghum is unchanged at 2,230 yuan/tonne in Tianjin, goes up by 30 yuan/tonne to 2,180 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 2,280-2,300 yuan/tonne in Qingdao. Domestic sorghum price keeps broadly steady to see dome 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, raw sorghum and dried sorghum go down by 40 yuan/tonne and 20 yuan/tonne separately to 2,000-2,040 and 2,140 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 remain unchanged at 1,960 and 2,060 yuan/tonne; in Heihe, dried sorghum with freight is unchanged at 2,060 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 possible growing 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 makes investors become more willing to lift the price amid supply shortages and high cost. 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 mostly remain stable today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.90)
