Today (Dec. 28th), the market for grains in China is shown as follows:
Corn: Domestic corn prices continue to stay stable to rise today. Prices stay at a range of 1,940-2,040 yuan/tonne among Shandong processing enterprises, another rise of 10-20 yuan/tonne partially from yesterday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture goes up by 10 yuan to 1,730 yuan/tonne, and 15% moisture of volume weight over 700 g/L goes higher by 10 yuan to 1,850 yuan/tonne; old corn goes up by 10 yuan to 1,830 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn goes up by 10 yuan to 1,830-1,840 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; and some second-class new corn produced in 2018 is priced higher by 10 yuan to 1,970-1,990 yuan/tonne.
In the North regions, the price may have touched the psychological bottom line of planters after sustained declines, and traders have take a less optimistic tactic in sales and tend to wait on account of narrower margins in shipment. On the other side, leaning on their stocks, which have not been built up, processing companies have continued to raise their purchasing price to attract greater volume, with another rise of 10-20 yuan/tonne locally. In line with this, the price has also inched higher by 10 yuan/tonne in northeast regions and at ports, where the market sentiment is also propped up by the demand from provincial and national reserves. However, corn supply remain quite available in planting areas, so there still exist some risks in intensive sales from planters 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 edge up. 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).
Bearish sentiment still hovers upon a possible import growth for US sorghum, since there have been increasing expectations for US grain 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 6.86)
