Today (Feb. 18th), the market for grains in China is shown as follows:
Corn: Domestic corn prices step down today. The price goes down by 6-40 yuan/tonne to 1,890-1,994 yuan/tonne in Shandong. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced lower by 10-20 yuan at 1,790-1,800 yuan/tonne, and 20% moisture is unchanged at 1,700 yuan/tonne. At Bayuquan port, 2018 new corn is priced lower by 10 yuan/tonne at 1,780-1,790 yuan/tonne (volume weight 690-700 g/L). At Shekou port, Guangdong, second-class new corn is priced down by 20 yuan at 1,940-1,950 yuan/tonne.
Corn supply remains abundant as planters scramble to clear their inventories with the end of the festival, in addition to unfavorable storage temperature. And further processing enterprises remain cautious in purchasing on account of slim processing margins and dismal consumption among downstream buyers. In the meantime, feed companies have made little replenishment subject to the sentiment of “buying upon price hikes instead of declines”, especially after live hog capacity was scaled back before the festival for souring African swine fever. Corn price is thus forced to go downside in choppy trading recently. In the short term, corn price is predicted to go weak under pressure. But corn sales may be hampered by another round of rainfalls and snowfalls in North and Huanghuai Regions. Later focus will be on the game between sales pace from local planters and replenishment demand among enterprise. The outcome of US-China negotiations is still pending with both sides committing to strike a trade deal. If China increases the imports of corn and its substitutes, domestic corn market will no doubt fall bearish.
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 and 2,180-2,200 in Qingdao; dried sorghum levels off at 2,310 yuan/tonne in Tianjin and 2,320 in Qingdao. Domestic sorghum price keep firm 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, raw sorghum and dried sorghum with freight are priced steadily at 1,880 yuan/tonne and 1,960 yuan/tonne in Daqing, and dried sorghum with freight remains unchanged at 2,010 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 in Xinzhou.
Barley: Barley price holds steady today. (Australian barley: raw sorghum is not offered in Qingdao and remains unchanged at 2,360-2,380 in Tianjin, and bulk raw sorghum is unchanged at 2,210-2,220 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 steadily at 1,920 yuan/tonne in Guangdong).
Grain market is now strongly propped up supply tensions of port US sorghum and high cost of Australian sorghum. And port barley inventory remains low so that holders are lifting the price on account of stubbornly high cost of Australian barley. Nevertheless, 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 corn. Second, feed companies remain cautious in purchasing amid slow consumption when hog industry has been plagued by ongoing epidemic after hog farmers slaughtered their breeding pigs before the Spring Festival while drastically cut their piglet replenishment. Grain market has been light and port grain price remains stable today in the coexistence of the bull and the bear. Generally, port sorghum and barley markets are predicted to keep steady with some fluctuations in the short term.
(USD $1=CNY 6.77)
