Today (Dec.25th), the market for grains in China is shown as follows:
Corn: Domestic corn posts mixed prices today, of which it reverses its declines to steady with some rebounds in North China, but falls further in Northeast China and at ports. Prices mostly stay at a range of 1,904-2,034 yuan/tonne among Shandong processing enterprises, a rebound of 6-10 yuan/tonne partially from yesterday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture is unchanged at 1,720 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes down by 5 yuan to 1,835 yuan/tonne; old corn is unchanged at 1,820 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn remains unchanged at 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 at highs to 1,950-1,960 yuan/tonne.
In consideration of shorter and shorter sale time available as the year draws closer, planters and traders, enveloped by strong bearish sentiment from the market, have quickened their pace to sell their new corn and clear their old corn stocks. Consequently, corn market is now in adequate supply. On the other side, processing enterprises in Northeast China, having built their stocks gradually, take a firmer and firmer stand in forcing prices down, with another reduction of 10-20 yuan/tonne today. In the meantime, due to the deteriorating African swine fever and the continued price declines in Northeast planting areas, corn demand has been soft when feed companies choose to stay on the sidelines. But in the North markets, many holders now tend to wait and hoard their stocks after the clearance of some stocks in hand recently; thus, corn price posts another rise of 6-10 yuan/tonne in Shandong today. On the whole, corn market will find it easy to go downside, but difficult to move upward under heavy pressure from sales in planting regions. Market participants can keep monitoring the game between sale pace among planters and stockpile demand from enterprises.
Sorghum: Imported sorghum price stops declining to stay 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 2,220 yuan/tonne in Tianjin (some can be negotiated by a range of 20-40 yuan/tonne), 2,180 in Shanghai, 2,250 in Nantong, 2,180-2,200 yuan/tonne in Qingdao and not offered 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 reverses its declines to 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 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 1,920 and 2,040 yuan/tonne; in Heihe, dried sorghum with freight is unchanged at 1,990 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).
The grain market has been in negative territory upon growing expectations that there may be an increasing amount of US sorghum imports now that China and the US have achieved a consensus. Besides, port sorghum and barley, the energy feed of corn, have lost their price advantages. Therefore, port shipment is now cracked down by light demand in sorghum market. However, the market has become more willing to support the price on account of supply shortages of port sorghum and its high cost. In addition, subject to the policies of anti-dumping and anti-subsidy, port barley may see a lessened volume under markedly growing import cost. 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 6.88)
