Today (Jan. 21st), the market for grains in China is shown as follows:
Corn: Domestic corn prices are mixed partially today. The price rebounds by 6-20 yuan/tonne to settle at 1,896-2,030 yuan/tonne in Shandong. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture is priced steadily at 1,820-1,830 yuan/tonne, and 20% moisture of volume weight over 700 g/L is unchanged at 1,740 yuan/tonne; old corn levels off at 1,850 yuan/tonne (volume weight 700 g/L). At Bayuquan port, 2018 new corn is priced lower by 5 yuan at 1,810-1,815 yuan/tonne (volume weight 700-720 g/L). At Shekou port, Guangdong, second-class new corn is priced steadily at 1,970-1,980 yuan/tonne.
The market has been shaken by some 50%-60% of surplus corn in northeastern planting areas, and local planters are still active in selling with urgent needs for cash towards the end of the year. But processing companies around have already built up stocks for at least one month quotas and showed weakened motivation in purchasing so that they have continued to lower down the price, with another reduction of 10 yuan/tonne in Jilin today. Besides, corn feed consumption has been undermined by frequent outbreaks of African swine fever this year, and some feed companies have nearly completed their stockpiles. But in North China, local planters tend to hoard their corn and stay on the sidelines since the price has appeared to have hit the bottom after continued falls recently, so it has rebounded by 6-20 yuan/tonne in Shandong today. Generally, corn price will hold firm to post narrow adjustments before the Spring Festival, and buyers can pay attention to sales paces by the end of this month.
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 2,170-2,200 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 2,280-2,310 in Tianjin, 2,350-2,360 in Nantong and 2,320 yuan/tonne in Qingdao. Domestic sorghum price stays stable to decline today: In 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 Province, 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, bulk dried sorghum with freight is 2,120 yuan/tonne in Baicheng, and raw sorghum is 1,920-1,940 yuan/tonne and dried sorghum sacks 2,040 yuan/tonne in Taonan. In Heilongjiang Province, there is no quotation in Qiqihar; raw sorghum and dried sorghum with freight are priced lower by 20 yuan/tonne separately at 1,880 yuan/tonne and 1,980 yuan/tonne in Daqing; and dried sorghum with freight levels off at 2,040 yuan/tonne in Heihe. In Shanxi Province, raw sorghum is unchanged at 2,100 yuan/tonne in Yuncheng, bulk dried sorghum with freight is priced steadily at 2,210 yuan/tonne in Jinzhong, and raw sorghum with freight and dried sorghum with freight remain unchanged at 1,960 and 2,160 yuan/tonne.
Barley: Barley price holds steady to rise today. (Australian barley: raw sorghum is offered in Qingdao and 2,380 in Tianjin, and bulk raw sorghum remains unchanged at 2,250 in Nantong; Canadian barley: raw barley is unchanged at 2,120 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 higher by 20 yuan at 1,920 yuan/tonne in Guangdong).
Port sorghum has nearly run out of stock so that importers with goods in hand show greater willingness to prop up the price due to supply shortages. And port barley stock is also shrinking and holders are lifting the price on account of stubbornly high cost of Australian barley, with some raising their quotations today. Merely, spot markets of port sorghum and barley have been curbed by following two aspects. First, port sorghum and barley, as energy feed substitute to corn, have lost their price advantage against domestic corn. Second, market demand has turned light upon reduced feed consumption since hog industry has been plagued by ongoing epidemic so that hog farmers have been trying to slaughter their breeding pigs before the Spring Festival while drastically decreasing piglet replenishment. Port grain price remains stable today, and port sorghum and barley markets are predicted to go weak with some fluctuations in the short term.
(USD $1=CNY 6.79)
