Today (Jan. 10th), the market for grains in China is shown as follows:
Corn: Domestic corn prices hold the trend to decline fractionally today. Prices mostly steady at a range of 1,904-2,020 yuan/tonne among Shandong processing enterprises, some down by 6-10 yuan/tonne from yesterday. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture levels off at 1,840-1,850 yuan/tonne, and 20% moisture of volume weight over 700 g/L 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 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.
The sale volume of corn has been on the rise amid the growing need for liquidation by some traders with just over twenty days to go before the Spring Festival. Despite such a loose supply pattern, downstream processing companies are slow in purchasing after having built up their inventories gradually, sending the price to decline slightly by 6-10 yuan/tonne among some Shandong companies today. Meanwhile, demand from downstream feed enterprises have been tepid under the deteriorating African swine fever. In addition, China and the United States have already wrapped up their trade talks, with the Trump administration stating that China has made a commitment to purchase more US farm commodities. And China has also approved on January 8 the import of five GM crops. Therefore, the market sentiment may be pressed by growing expectation for imports. In the short term, corn market will likely fluctuate to decline marginally, but the downward space will be limited before the Spring Festival by the planting cost and the rigid need for stockpiling. Buyers can continue to follow the sale pace of local planters.
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 holds steady today. (Australian barley: raw sorghum remains unchanged at 2,240 yuan/tonne in Qingdao, 2,250 in Nantong and 2,380 in Tianjin; 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).
As energy feed substitute to corn, port sorghum and barley has lost their price advantage against domestic 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 6.80)
