Today (Dec. 26th), the market for grains in China is shown as follows:
Corn: Domestic corn prices mostly reverse the decline to keep steady and some even rebound today. Prices stay at a range of 1,914-2,034 yuan/tonne among Shandong processing enterprises, another rebound of 6-20 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 remains unchanged at 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 is unchanged at 1,950-1,960 yuan/tonne.
In the Northeast market, enveloped by strong bearish sentiment from the market, planters have gone ahead to increase their sale volume and traders to clear their old corn stocks. Consequently, the supply side has become looser. On the other side, processing enterprises, having built their stocks gradually, take a firm stand in forcing prices down, with a total reduction of 30-190 yuan/tonne since December. In the meantime, corn demand has been soft when feed companies choose to stay on the sidelines due to the deteriorating African swine fever. But in the North markets, due to rainy weather and low prices, local planters show no intention to trim their corn stocks; but some enterprises still have demand for stockpiles; thus, corn prices have reversed the declines to steady and even rebound in the past few days. On the whole, the supply will still go beyond the requirements amid heavy sale pressure in planting regions before the Spring Festival, so corn market will find it easy to go downside, but difficult to move upward. Market participants can keep monitoring the game between sale pace among planters and stockpile demand from enterprises.
Sorghum: Imported sorghum price 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 stays stable to rise 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 goes up by 10 yuan/tonne to 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).
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 soft 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)
