Today (Dec.27th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable to rise today. Prices stay at a range of 1,940-2,040 yuan/tonne among Shandong processing enterprises, another rise of 10-26 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 higher by 5 yuan to 1,840 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 north regions, corn sale is now hampered by the rain and snow in some local areas. In addition, local planters are reluctant to sell at low prices with the continuous price declines. Therefore, corn collection centers now have some difficulty in purchasing. On the other hand, processing enterprises have seen declining inventories amid less and less corn arriving at their factories. Therefore, for their rigid demand in stockpiling before the festivals, processors have begun to raise the purchasing price, with some rises of 10-26 yuan/tonne in Shandong today. And in the northeast regions, as the market sentiment is propped up, corn prices have broadly reversed their declines to steady in local areas and at ports. But some 70-80% of the corn production has yet been sold among local planters, so there will be huge sale risks before the Spring Festival. In addition, corn feed consumption is hard to grow amid the deteriorating African swine fever. In the near term, corn market will stay stable to post narrow adjustments. 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 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 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 market turns bearish upon a possible import growth for US sorghum, since there have been increasing expectations for agriculture product imports amid the trade detente between China and the United States. Besides, port sorghum and barley, the energy feed of corn, have lost their price advantages. Port spot shipment is thereby being cracked down. 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 markets will likely show narrow fluctuations in the short term.
(USD $1=CNY 6.89)
