Today (Jan. 3rd), 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 1,916-2,030 yuan/tonne among Shandong processing enterprises, a partial reduction of 4-20 yuan/tonne from yesterday. At Jinzhou port, Liaoning, 2018 new corn with 20% moisture holds the line to settle at 1,720 yuan/tonne, and 15% moisture of volume weight over 700 g/L at 1,850 yuan/tonne; old corn is unchanged at 1,820 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn holds the line to settle at 1,840-1,850 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class old corn is priced steadily at 1,960-1,970 yuan/tonne, and some second-class new corn produced in 2018 at 1,980-1,990 yuan/tonne.
Sales time is getting shorter and shorter as the Spring Festivals draws near, in addition to the growing needs for liquidation, so that the sales volume has been on the rise. In view of more and more vehicles loaded with corn from Northeast markets and local planters, grain collection and storage enterprises begin to lower down the price, with another reduction of 4-20 yuan/tonne. In the meantime, corn feed consumption is struggling to grow as the African swine fever continues to deteriorate. Nevertheless, local planters have showed reluctance to sell at current low prices, in addition to traffic tensions and stockpiles by the enterprises toward the end of the year; thus, corn market may be embrace some positive supports. To give an example, corn price has rebounded by 50 yuan/tonne offered by Yihai Kerry in Kaiyuan, Liaoning, and by 20 yuan/tonne in Gongzhuling, Jilin. Generally speaking, short-term corn market will stay stable to present narrow corrections, and participants can keep monitoring the game between sale pace among planters and stockpile demand from enterprises.
Sorghum: Imported sorghum prices keep steady with some declines 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 goes down by 20 yuan to 2,200 yuan/tonne in Tianjin and remains unchanged at 2,180 in Shanghai, 2,250 in Nantong, 2,180-2,200 yuan/tonne in Qingdao and not offered in Guangdong; dried sorghum goes down by 20 yuan to 2,310 in Tianjin and levels off at 2,350-2,360 in Nantong and 2,320 yuan/tonne in Qingdao. Domestic sorghum price stays stable to fall today: In Yuncheng, Shanxi, raw sorghum is unchanged at 2,100 yuan/tonne; in Hinggan League, inner Mongolia, raw sorghum remains unchanged at 1,900 and dried sorghum goes lower by 80 yuan to 2,020 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 with some rises today. (Australian barley: raw sorghum is unchanged at 2,250 yuan/tonne in Qingdao and goes higher by 40-50 yuan to 2,250 in Nantong; Canadian barley: raw barley goes up by 10-20 yuan to 2,150 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 with some fluctuations today, and port sorghum and barley markets are predicted to show narrow fluctuations in the short term.
(USD $1=CNY 6.87)
