Today (Jan. 8th), the market for grains in China is shown as follows:
Corn: Domestic corn prices hold steady to decline fractionally today. Prices mostly steady at a range of 1,910-2,020 yuan/tonne among Shandong processing enterprises, some down by 4 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture goes down by 20 yuan at high to 1,840-1,850 yuan/tonne, and 20% moisture of volume weight over 700 g/L levels off 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.
While the sales volume of corn has been on the rise due to adequate supply surplus in planting areas and growing demand for liquidation by some traders approaching the Spring Festival, downstream processing companies have mostly bought on daily demand since they have gradually built up their inventories. Several companies have raised the purchasing price for stockpiling, but the upward momentum is still not strong enough. In the meantime, demand from downstream feed companies has been sluggish due to the deteriorating African swine fever (ASF). 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. In the near term, corn may fluctuate to decline slightly amid sustained supply pressure, but will have limited downward space. Market participants can keep an eye on the sales pace among local planters. 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 today: In Inner Mongolia, raw sorghum and dried sorghum remain unchanged at 1,900 and 2,020 yuan/tonne Hinggan League, 2,000 and 2,100-2,140 yuan/tonne in Chifeng; and raw sorghum with freight is priced steadily at 1,940 yuan/tonne in Tongliao. In Jilin, dried sorghum with freight is unchanged at 2,240 yuan/tonne in Changchun, raw sorghum sacks and dried sorghum with freight are both at 2,000 yuan/tonne in Songyuan, and bulk dried sorghum with freight is 2,120 yuan/tonne in Baicheng. In Heilongjiang, there is no quotation in Qiqihar; raw sorghum and dried sorghum with freight both remain unchanged at 1,920 and 2,040 yuan/tonne in Daqing; and dried sorghum with freight is unchanged at 2,000 yuan/tonne in Heihe. In Shanxi, raw sorghum is unchanged at 2,100 yuan/tonne in Yuncheng, and bulk dried sorghum with freight is 2,200 yuan/tonne.
Barley: Barley price stays stable today. (Australian barley: raw sorghum holds steady at 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 steadily at 1,920 yuan/tonne in Guangdong).
Port sorghum and barley has lost their edge as energy feed substitute to corn. Worse still, hog farmers have been making replenishment with a negative attitude amid lingering concerns over the rampant ASF, while active in selling as the Spring Festival draws near. Therefore, the spot market is restrained by the light demand under reduced feed demand. 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 today, and port sorghum and barley markets are predicted to show narrow fluctuations in the short term.
(USD $1=CNY 6.86)
