Today (Dec.18th), the market for grains in China is shown as follows:
Corn: Domestic corn price continues to post slow declines partially today. Prices mostly stay at a range of 1,916-2,040 yuan/tonne among Shandong processing enterprises, down by another 4-14 yuan/tonne partially from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture is unchanged at 1,750 yuan/tonne, and 15% moisture of volume weight over 700 g/L at 1,870 yuan/tonne; old corn is unchanged at 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 goes down by 10 yuan/tonne to 1,980-2,000 yuan/tonne.
Corn supply is trending looser now amid weak market and shortened marketable periods as the year closes. For one thing, the sale volume is on the rise as planters become less reluctant in hoarding. For another, traders have quickened their paces to handle shipments to avoid risks. However, processing enterprises have gradually built adequate stocks so that they have continued to reduce the purchasing prices, with another decline of 4-20 yuan/tonne. In addition, feed demand for corn is difficult to grow as its end consumption has been crippled by the deteriorating African swine fever. Without any bullish supports and under rising supply & demand pressure, short-term corn market will probably continue to go weak, but some planters may again show unwillingness to sell at low prices after this round of price declines. Market participants can follow the competition between sale paces among planters and stockpiles in enterprises closely.
Sorghum: Imported sorghum price stays stable with some rises today. (US sorghum: raw sorghum is unchanged at 2,120 yuan/tonne in Shanghai and not offered for out of stocks in Nantong, Zhangjiagang and Guangdong. Australian sorghum: raw sorghum is unchanged at 2,230 yuan/tonne in Tianjin, 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 goes up by 20-40 yuan/tonne to 2,320 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 goes down by 40 yuan/tonne to1,900 yuan/tonne and dried sorghum with freight remains unchanged at 1,980 yuan/tonne; in Chifeng, inner Mongolia, raw sorghum and dried sorghum remain unchanged at 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 6.89)
