Today (Jan. 2nd), the market for grains in China is shown as follows:
Corn: Domestic corn prices decline slightly to adjust today. Prices mostly stay stable at a range of 1,922-2,040 yuan/tonne among Shandong processing enterprises, a reduction of 6-34 yuan/tonne from that before the New Year’s holidays. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture sheds 10 yuan to 1,720 yuan/tonne, and 15% moisture of volume weight over 700 g/L levels at 1,850 yuan/tonne; old corn goes down by 10 yuan to 1,820 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn holds the line to settel at 1,840-1,850 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn edges up by 10 yuan to 1,960-1,970 yuan/tonne; and some second-class new corn produced in 2018 is priced higher by 10 yuan at lows to 1,980-1,990 yuan/tonne.
Corn market is now in liberal supply, for its sales volume has been on the rise amid shortened marketing duration for local planters and credit repayment pressure among some traders as the Spring Festival draws near. In addition, imported corn has been arriving at Shandong recently. Consequently, processing enterprises, having built up their safety stocks, show greater willingness to force prices down, with another reduction of 6-10 yuan/tonne in some Shandong regions and of 10 yuan/tonne among some Jilin companies. In the meantime, corn feed consumption is hard to increase because feed companies may downscale their stockpiles in the run up to the Spring Festival under the deteriorating African swine fever this year. In the near term, corn market will maintain its weak trend with some fluctuations under the sustained oversupply pattern. But the downside may be not pronounced as planters begin to show reluctance in selling while downstream companies have embarked on their stockpiles. Market participants can keep monitoring the game between sale pace among planters and stockpile demand from enterprises.
Sorghum: Imported sorghum prices 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 2,330 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 2,100 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, raw sorghum and dried sorghum with freight both remain unchanged at 1,920 and 2,040 yuan/tonne; and 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 after the telephone talk between the Chinese and the US presidents. 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 coexistence of the bull and the bear, port grain price remains stable today, and port sorghum and barley markets are predicted to show narrow fluctuations in the short term.
(USD $1=CNY 6.86)
