Today (Feb. 19th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable with slight declines today. The price prevails at 1,900-1,994 yuan/tonne in Shandong. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced steadily at 1,790-1,800 yuan/tonne, and 20% moisture goes down by 10 yuan to 1,690 yuan/tonne. At Bayuquan port, 2018 new corn is priced lower by 10 yuan/tonne at 1,780 yuan/tonne (volume weight 690-700 g/L). At Shekou port, Guangdong, second-class new corn is priced down by 10 yuan at 1,930-1,940 yuan/tonne.
Provincial reserve of Heilongjiang is said to open their silos for corn purchase, and Sinograin in Northeast China will properly increase their reserves depending on market conditions; thus, domestic corn market has managed to slow down the price decline. In the meantime, corn price has been supported as planters in main planting areas are willing to sell, coupled by another round of rain and snow in North and Huanghuai Regions. However, planters still bears some pressure as it is not easy to hoard their storage under such unfavorable weather, and downstream companies are just purchasing to meet daily demand. And 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 continue its downward trend today. Short-term corn market will likely stay stable to post weak adjustments, and later focus will be on the game between sales pace from local planters and replenishment demand among enterprises. Participants can keep an eye on US-China trade talks in Washington this week. If the two countries manage to strike a deal, China increases the imports of corn and its substitutes, and then 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 steadily fluctuate at a narrow range today: In Inner Mongolia, raw sorghum and dried sorghum both go up by 20 yuan to 1,920 and 2,040 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 goes down by 10 yuan to 2,000 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 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)
