Today (Mar. 8th), the market for grains in China is shown as follows:
Corn: Domestic corn prices remain stable to go weak today. The price prevails at 1878-1950 yuan/tonne in Shandong, mostly stable and some down by 6-20 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced steadily at 1,740-1,745 yuan/tonne, and 20% moisture levels off at 1,630 yuan/tonne. At Bayuquan port, 2018 new corn remains unchanged at 1,730-1,740 yuan/tonne (volume weight 690-700 g/L). At Shekou port, Guangdong, second-class new corn is priced steadily at 1,860 yuan/tonne.
With a surplus of 30% unsold in Northeastern areas, corn demand remains soft as further processing companies choose to take hand-to-mouth buying. Meanwhile, corn feed consumption is also sluggish since hog farmers have been cautious in replenishing when pig feeding is hit hard by the contagious ASF. However, state and local reserves have entered into market to purchase in Northeast. Meanwhile, Heilongjiang corn planters will get a smaller subsidy by 200 yuan/mu (1 mu=0.06 ha) than soybean growers, and No. 1 central document?has made it clear to further cut down corn planting acreage in 2019; hence, there will be little room for corn to go downward in the short term thanks to the polices. But short-term corn price may stay stable with slight declines for low demand yet adequate supply, and later focus will be on the competition between supply and demand. By the way, data from the USDA showed that China has bought 65,000 tonnes of US sorghum, the first purchase since August last year. And amid trade talks between Beijing and Washington, participants can keep a close watch on whether China will open its market for US agricultural products.
Sorghum: Imported sorghum prices keep steady today. (US sorghum: raw sorghum is 2,120 yuan/tonne in Shanghai, 2,120 in Nantong, and not offered for out of stock in Zhangjiagang and Guangdong. Australian sorghum: raw sorghum remains unchanged at 2,160 yuan/tonne in Tianjin, 2,180 in Shanghai, 2,180-2,200 in Qingdao and 2,220 in Nantong; 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 2,000 yuan/tonne Hinggan League; raw sorghum and dried sorghum is priced steadily at 1,960 and 2,080 yuan/tonne in Chifeng; and raw sorghum 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 2,190 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 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. Therefore, 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. And according to Cofeed, pig number has dropped further by 8.5% in February and sow amount by 15% amid the rampant ASF. Besides, data from the USDA showed that China had bought 65,000 tonnes of US sorghum, the first purchase since August last year. And amid trade talks between Beijing and Washington, participants can keep a close watch on whether China will open its market for US agricultural products. Generally, port sorghum and barley markets are predicted to keep steady with some fluctuations in the short term.
(USD $1=CNY 6.72)
