Today (Apr. 3rd), the market for grains in China is shown as follows:
Corn: Domestic corn prices broadly stay stable with slight rises today. The price prevails at 1,804-1,940 yuan/tonne in Shandong, with some ups and downs within a narrow range. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced higher by 5-10 yuan at 1,735-1,745 yuan/tonne. At Bayuquan port, 2018 new corn is priced lsteadily at 1,720-1,725 yuan/tonne (volume weight 700 g/L). At Shekou port, Guangdong, second-class new corn is quoted steadily at 1,850-1,860yuan/tonne.
Local farmers have almost cleared up their barns in Northeastern regions, where the market is also supported by one-time reserves at full swing now. In addition, corn price has gone up by 10-20 yuan/tonne in Heilongjiang as its volume arrived at factories has been reducing in recent days. Meanwhile, the price has also been raised by around 10 yuan/tonne in Shandong amid sales reduction. However, trade talks are going well between China and the United States. And corn-based feed consumption remains soft since feed enterprises remain cautious in purchase in view of slashed hog market by the ASF. In addition, corn inventory has continuously rewritten its record in Northern areas and has also stayed at record high in the South amid slow shipment. Overall, corn prices will find it hard to increase due to the imbalance between supply and demand, and participants can continue to focus on changes in demand.
Sorghum:
Imported sorghum prices decline 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 edges down by 40 yuan to 2,140 yuan/tonne in Tianjin, but remains unchanged at 2,180 in Shanghai, 2,200 in Qingdao and 2,280 in Nantong; dried sorghum goes down by 20 yuan to 2,250 yuan/tonne in Tianjin and 2,300 in Qingdao.
Domestic sorghum prices hold steady today: In Inner Mongolia, raw sorghum and dried sorghum remain unchanged at 1,920 and 2,000 yuan/tonne in Hinggan League; raw sorghum and dried sorghum are priced steadily at 1,940 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 priced steadily 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 is unchanged at at 1,860 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 1,900 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 2,160 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 hold steady today. (Australian barley: raw sorghum remains unchanged at 2,230 yuan/tonne in Qingdao and and bulk raw sorghum is priced steadily at 2,230 in Nantong; Canadian barley: raw barley is priced steadily at 2,150 yuan/tonne in Nantong and 2,140 yuan/tonne in Qingdao; French barley: raw barley is 2,090-2,100 yuan/tonne in Nantong; Ukrainian barley: not offered in Guangdong).
Sorghum price is now dragged down by weak demand due to continued drops in corn prices. And importers with storage in hand tend to prop up prices in view of low barley inventories at ports and stubbornly high cost of Australian barley. Merely, port sorghum and barley have lost their price advantage against corn as its energy feed substitutes. And data from China’s Ministry of Agricultural and Rural Affairs confirmed 114 outbreaks (111 for hog and 3 for wild boar) of the ASF, with more than 916,000 pigs culled in total. This epidemic has roiled the original trend of hog cycle in China, as middle and small farmers withdrew from the market and geared up the elimination of breeding sow stocks since the first outbreak last August, and it has been fiercely cutting the pig number in those provinces reported with more outbreaks. Thus, it will be hard for farmers to rebuild confidence in short time as a fall in live pig and sow stocks has stricken a serious blow at the sector. Given this, grain market will be curbed by its later consumption. Besides, U.S. trade representatives will fly to Beijing the week of March 25 to meet with Chinese Vice Premier Liu He, who will pay a return trip to Washington, D.C. the following week, with both sides striving to reach a deal by the end of April, , although the meeting between Xi Jinping and Donald Trump could be delayed until June. In addition, 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. Generally, port sorghum and barley markets are predicted to keep steady with some fluctuations in the short term.
(USD $1=CNY 6.71)
