Today (Dec.24th), the market for grains in China is shown as follows:
Corn: Domestic corn price continues its weak trend partially today. Prices mostly stay at a range of 1,904-2,034 yuan/tonne among Shandong processing enterprises, a rebound of 10-20 yuan/tonne partially from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture goes down by 30 yuan to 1,720 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes down by 20 yuan to 1,840 yuan/tonne; old corn goes down by 30 yuan to 1,820 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn goes down by 20 yuan/tonne to 1,820-1,830 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn goes down by 10 yuan to 1,950-1,960 yuan/tonne.
The market sentiment is weak since the sale time for new corn is getting shorter and shorter with the year drawing to a close so that local planters have become looser in hoarding their stock. On the other side, traders have also quickened their pace to clear their old corn stocks. In this case, corn market is now in adequate supply. But processing companies in Northeast China, having built their stocks, have continued to lower down the purchasing price, with a reduction of 4-10 yuan/tonne today. In addition, feed companies still take a cautious tactic in that feed consumption is still subject to the deteriorating African swine fever. However, with this round of price declines in North China, planters show resistance again and traders tend to wait after selling out some inventories in hand. In this case, corn price reverses its declines to steady in North China, with a rebound of 10-20 yuan/tonne among some Shandong companies. Besides, downstream companies have got ready for stockpiles before the Spring Festival. And market participants can closely watch the game between sale paces among planters and stockpiles among grain-consumed companies.
Sorghum: Imported sorghum price stays stable to see some declines 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 goes down by 10 yuan/tonne to 2,220 yuan/tonne in Tianjin (some can be negotiated by a ranged of 20-40 yuan/tonne), and is unchanged at 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 to down 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 and 2,140 yuan/tonne; in Changchun, Jilin, dried sorghum with freight is unchanged at 2,240 yuan/tonne; 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 2,000 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 1,950 yuan/tonne in Guangdong).
Expectations rose that China would open its market now that the US and Chinese leaders had achieved a consensus. The bearish sentiment for possible growing US sorghum imports is now cracking down the 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?policies of “anti-dumping” and “anti-subsidy”, port barley may see a smaller import volume further as its import cost will be raised largely. And this will give support to barley market at its bottom so that the market is confident in propping up the price. 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)
