Today (Dec.19th), the market for grains in China is shown as follows:
Corn: Domestic corn price continues to go weak today. Prices mostly stay at a range of 1,910-2,034 yuan/tonne among Shandong processing enterprises, down by another 6-20 yuan/tonne partially from yesterday. 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 goes down by 10-20 yuan/tonne to 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.
The market turns bearish upon growing worries that China will open its market for US grain imports. In addition, the sales time available is shorter and shorter as the year closes. Therefore, corn supply has turned looser as the volume from local planters and the risk-averse traders is on the rise. But processing enterprises have gradually built adequate stocks so that they have continued to reduce the purchasing prices, with another reduction of 6-20 yuan/tonne. In addition, feed demand for corn is still subject to the deteriorating African swine fever. Under growing pressure from supply and demand, short-term corn market may still extend its weak trend. But some planters have again showed unwillingness to sell at low prices after recent price declines. Besides, corn market will enter it peak season soon. In this case, there may be little room for price declines. Market participants can follow the competition between sale paces among planters and stockpiles in enterprises closely.
Sorghum: Imported sorghum price stays stable 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, 2,180-2,200 yuan/tonne in Qingdao and 2,400 in Guangdong; dried sorghum is unchanged at 2,340 in Tianjin, 2,350-2,360 in Nantong and 2,320 yuan/tonne in Qingdao. Domestic sorghum price keeps steady 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 1,900 and 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; in Qiqihar, Heilongjiange, dried sorghum with freight is 2,040 yuan/tonne; 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 remain stable today, and port sorghum and barley market will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.90)
