Today (Jan. 4th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stays stable to adjust narrowly today. Prices mostly stay stable at a range of 1,910-2,030 yuan/tonne among Shandong processing enterprises, another partial reduction of 4-16 yuan/tonne from yesterday. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture goes up by 10 yuan to 1,860 yuan/tonne, and 20% moisture of volume weight over 700 g/L settles at 1,720 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 there is just one month left to the Spring Festival, in addition to the credit repayment pressure and liquidation needs, so that the sales volume from local planters has been on the rise. And part of the supply from Northeast has been channeled into the North market amid the weak price trend. Consequently, the price is forced to go down under growing supply, with another reduction of 4-20 yuan/tonne in the North market today. In the meantime, corn feed consumption is struggling to grow as the African swine fever continues to deteriorate. However, local planters still show no interest in selling their corn at current low price, 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 been raised by 10 yuan/tonne at Jinzhou port. Generally speaking, short-term corn market will stay stable to see narrow corrections, and there exist some risks of intensive sales before the Spring Festival. Participants need to pay close attention to the new round of trade talks between China and the United States on January 7 in Beijing, and to signs of restarting grain imports.
Sorghum: Imported sorghum prices keep steady 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 remains unchanged at 2,200 yuan/tonne in Tianjin, 2,180 in Shanghai, 2,250 in Nantong, 2,180-2,200 yuan/tonne in Qingdao and not offered in Guangdong; dried sorghum levels off at 2,310 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 remain unchanged at 1,900 and 2,020 yuan/tonne; in Chifeng, inner Mongolia, raw sorghum and dried sorghum remain unchanged at 2,000 and 2,100-2,140 yuan/tonne; in Tongliao, inner Mongolia, raw sorghum with freight is 1,960 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 2,250 in Nantong; Canadian barley: raw barley settles at 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).
Currently, port sorghum and barley, the energy feed of corn, have lost their price advantages. In addition, the demand has been light as feed consumption is subject to the contagious African swine fever. 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 6.86)
