Today (Feb. 28th), the market for grains in China is shown as follows:
Corn: Domestic corn prices go down further today, yet mostly at a slower pace. The price prevails at 1,890-1,940 yuan/tonne in Shandong, some down by another 4-10 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced steadily at 1,740-1,750 yuan/tonne, and 20% moisture remains unchanged at 1,640 yuan/tonne. At Bayuquan port, 2018 new corn is priced higher at low point by 5 yuan at 1,725-1,730 yuan/tonne (volume weight 690-700 g/L). At Shekou port, Guangdong, second-class new corn goes down by 10-20 yuan to 1,870 yuan/tonne.
Corn supply pressure has ballooned now that farmers are now in a hurry to sell their corn for rising temperatures when they still have a lot in storage. Processing companies limited by daily demand tend to lower down purchasing prices, with another reduction of 10-20 yuan/tonne in some Northeastern regions. Meanwhile, corn price is also curbed by low demand for replenishment from feed companies under the souring ASF, with a reduction of 10-20 yuan/tonne at port today. However, provincial reserves in Heilongjiang have started to purchase, which may help ease pressure from intensive sales in Northeastern regions, and price declines have slowed down in Northern markets in recent two days. Overall, corn prices may extend its weak trend to go down in the near term.
Sorghum: Imported sorghum prices keep steady today. (US sorghum is not offered for out of stocks in Shanghai, Nantong, Zhangjiagang and Guangdong. Australian sorghum: raw sorghum remains unchanged at 2,160 yuan/tonne in Tianjin, 2,180 in Shanghai and 2,180-2,200 in Qingdao; dried sorghum levels off at 2,140 yuan/tonne in Tianjin and 2,320 in Qingdao. Domestic sorghum prices stays stable 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 steadily at 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 unchanged at 1,900 yuan/tonne and dried sorghum sacks at 1,980 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, hog farmers become active in selling with concerns for frequent outbreaks of the ASF. And consumers now prefer to choose poultry products and eggs after some well-known food companies are reported positive results in their processed products. 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 weak demand. 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 6.69)
