Today (Jan. 7th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable to adjust narrowly today. Prices mostly steady at a range of 1,910-2,020 yuan/tonne among Shandong processing enterprises. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture goes up by 10 yuan at high to 1,860-1,870 yuan/tonne, and 20% moisture of volume weight over 700 g/L holds the line of last Friday 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 remains basically unchanged at 1,845 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 1,980-2,000 yuan/tonne.
As the year draws near, planters holding adequate corn surplus are busy clearing their corn, so are traders, who have needs for liquidation. But downstream processing companies have gradually built up their inventories, coupled by scanty profit from processing, so that some of them have been forcing down the purchasing price, with some declines of 4-10 yuan/tonne in Shandong and 14-16 yuan/tonne in Heilongjiang. In the meantime, the stockpile before the Spring Festival from feed companies this year may be softer than in previous years as the African swine fever wreaks havoc. However, planters are still striving to hoard their corn on account of high planting cost, together with growing cost to be applied under tight transportation capacity, which may help keep the corn price firm. In the short run, the price may fluctuate to go weak under sustained pressure from supply and demand, but will find little room to go downside. By the way, U.S. officials are meeting with their counterparts for talks in Beijing today, and buyers can keep an eye on the outcome and any update on agriculture products 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 to decline 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 priced lower by 20 yuan to 1,940 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 to decline today. (Australian barley: raw sorghum goes down by 10 yuan to 2,240 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 priced lower by 30 yuan to 1,920 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. 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 declines today, and port sorghum and barley markets are predicted to show narrow fluctuations in the short term.
(USD $1=CNY 6.85)
