Today (Feb. 25th), the market for grains in China is shown as follows:
Corn: Domestic corn prices sharply step down today. The price prevails at 1,896-1,950 yuan/tonne in Shandong, some down by 14-70 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced lower by 20-30 yuan/tonne at 1,760 yuan/tonne, and 20% moisture goes down by 30 yuan/tonne at 1,640 yuan/tonne. At Bayuquan port, 2018 new corn falls by 50-60 yuan/tonne to 1,720-1,730 yuan/tonne (volume weight 690-700 g/L). At Shekou port, Guangdong, second-class new corn declines by 40 yuan to 1,890-1,900 yuan/tonne.
With 40% of corn unsold in planting areas till now, 2 percentage points slower than that of last year, there is growing risks from intensive sales as it is hard to stock under rising temperatures. Further processing companies on the other side remain cautious in purchase on account of adequate supply. Among them, some Shandong enterprises have reduced their purchasing price by a total of 14-70 yuan/tonne during the weekend after a growing amount of corn arriving at their factories, and some companies in Northeast areas have continued to lower it down by 6-30 yuan/tonne. Demand from feed companies remains low as feed consumption is dismal under the souring ASF. Besides, China and the U.S. have continued to propel trade talks with more and more signs for a thaw, which is also bearish to domestic corn market. In the short term, corn market will maintain its weak trend under the pressure of its bearish fundamentals. Later focus will be on weather, sales pace and the outcome from trade talks.
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 is priced higher today: In Inner Mongolia, raw sorghum and dried sorghum remain unchanged at 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 higher by 20 yuan to 1,960 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 is unchanged at 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 2,220-2,230 yuan/tonne 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: not offered in Guangdong).
Grain market is now firmly supported by strained supply of port US sorghum and high cost of Australian sorghum. And port barley has held low inventories when import cost for Australian Barley stays stubbornly high. Therefor, importers with storage in hand tend to prop up prices. But port sorghum and barley have lost their price advantage against corn as its energy feed substitute. Moreover, slaughter enterprises remain cautious in pig admission and hog farmers become active in selling amid concerns with new cases reported from now and then. The market has estimated a 20% drops month-on-month in feed demand in February. In this case, feed enterprises are cautious in purchasing for sales declines. Spots markets of port sorghum and barley are thus curbed. 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 6.68)
