Today (Mar. 11th), the market for grains in China is shown as follows:
Corn: Domestic corn prices remain stable with some declines today. The price prevails at 1,854-1,950 yuan/tonne in Shandong, some down by 10-44 yuan/tonne from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced higher by 5 yuan at 1,740-1,750 yuan/tonne, and 20% moisture levels off at 1,630 yuan/tonne. At Bayuquan port, 2018 new corn goes higher by 10 yuan to 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.
Corn supply is still adequate because Northeastern planters may stir up a fresh round of intensive sales on account of unfavorable storage conditions for damp corn under rising temperatures. On the other side, downstream processing companies tend to take hand-to-mouth buying to satisfy daily demand and thus keep lowering down purchasing prices, resulting in a total decline of 10-40 yuan/tonne in Shandong recently. Worse still, the price is further limited by weak corn-based feed demand amid historical low hog replenishment since the market confidence is hit hard by ASF outbreaks. Beyond this, local reserves have entered into market to purchase in Northeastern areas, and the one-time reserve is also said to get started soon. Hence, there will be little room for corn to go downward in the short term thanks to the polices. Generally speaking, short-term corn price will come under pressure and stay steady with slight declines for its loose supply and weak demand. It is reported that there is less than 20% of corn left in Northeast, and later focus is still on the game between supply and demand.
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 steps down today: In Inner Mongolia, raw sorghum and dried sorghum remain unchanged at 1,920 and 2,000 yuan/tonne Hinggan League; raw sorghum goes down by 20 yuan to 1,940 and dried sorghum is priced steadily at 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 priced lower by 80 yuan at 2,160 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, dried sorghum with freight goes lower by 60 yuan to 1,800 yuan/tonne in Qiqihar; 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 prices stay stable with some fluctuations today. (Australian barley: raw sorghum is 2,220-2,230 yuan/tonne in Qingdao and and bulk raw sorghum is priced lower by 10 yuan at 2,220 in Nantong; Canadian barley: raw barley is unchanged at 2,120 yuan/tonne in Nantong; French barley: raw barley goes up by 10 yuan to 2,090-2,100 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. Data by China’s Ministry of Agricultural and Rural Affairs showed that 114 outbreaks (111 for hog and 3 for wild boar) of the ASF were reported in 27 provinces, resulting in a slaughtering of 916,000 pigs. 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.
