Today (Apr. 25th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable with some further rises today. The price prevails at 1,844-1,970 yuan/tonne in Shandong. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced lower by 10 yuan from yesterday afternoon at 1,820-1,830 yuan/tonne. At Bayuquan port, 2018 new corn goes up by 5 yuan/tonne to 1,805-1,810 yuan/tonne (volume weight 700 g/L). At Shekou port, Guangdong, second-class new corn is offered higher by 10 yuan at 1,960 yuan/tonne.
Farmers in productions areas have almost sold out their surplus, with about 10% left in northeast China and 20% in northern areas. Moreover, the government is heard to take stock in northeastern areas for about one month, during which no auction will be available. Therefore, the market estimated it be postponed to June at the soonest with its minimum price raised. Therefore, traders are encouraged to raise the price, sending it to go up 30-40 yuan/tonne at northern ports. Currently, corn prices keep firm in production areas and at ports. But the market has been curbed by slow corn-based consumption as feed factories, particularly in Southern China, are reluctant in purchases. Although traders have been raising their prices at ports, but slow shipment and high quotations mingling with low closing prices have been curbing on the market. Participants can keep watching on auctions, U.S.-China trade talks and changes in demand and supply.
Sorghum:
Imported sorghum prices stay stable 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 is prices steadily at 2,160 yuan/tonne in Tianjin, 2,180 in Shanghai, 2,160 in Qingdao and 2,260 in Nantong; dried sorghum is unchanged at 2,250 yuan/tonne in Tianjin and 2,300 in Qingdao.
Domestic sorghum prices go up today: In Inner Mongolia, raw sorghum and dried sorghum remain unchanged at 1,920 and 2,000 yuan/tonne in Hinggan League; raw sorghum is priced steadily at 1,980 and dried sorghum is 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 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 1,840 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 2,150 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 remain stable today. (Australian barley: raw sorghum remains unchanged at 2,220 yuan/tonne in Qingdao and and bulk raw sorghum is unchanged at 2,200 in Nantong; Canadian barley: raw barley is priced steadily at 2,120 yuan/tonne in Nantong and 2,120 yuan/tonne in Qingdao; French barley: raw barley is not offered 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. 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 6.73)
