Today (May. 8th), the market for grains in China is shown as follows:
Corn: Domestic corn prices runs on the strong side today. The price prevails at 1,854-1,990 yuan/tonne in Shandong, some down by 4-6 yuan/tonne. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced steadily at 1,850 yuan/tonne. At Bayuquan port, 2018 new corn is unchanged at 1,830 yuan/tonne (volume weight 700 g/L). At Shekou port, Guangdong, second-class new corn is offered at 1,980 yuan/tonne and traded at 1,970 yuan/tonne, and old corn is traded at 1,950 yuan/tonne.
Farmers have almost completed their corn sales in production areas, and the market expects that the auction will be postponed until June, so northeastern holders tend to hoard for price hikes. Besides, the market is still worried about the trade disputes. In the short term, corn supply will take on a tight outlook. Prices have remained high at south and north ports with another rise of 10 yuan at south ports today, and also go up by 50-60 yuan/tonne partially in Northeastern areas. Merely, auction schedule shall be released this month, but there are only about twenty days to June. And corn stockpiles have been ample in further processing enterprises and at ports, whilst traders are still holding some surplus in production regions. Therefore, corn prices will less likely to post sharp and consecutive rises before the release of auction schedule, and will go upward from the bottom gradually. Participants can focus on auction, trade talks and the pattern of demand and supply.
Sorghum:
Imported sorghum prices keep steady today. (U.S. raw sorghum: 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 unchanged at 2,130 yuan/tonne in Tianjin, 2,200 in Shanghai, 2,160 in Qingdao and 2,300 yuan/tonne in Nantong, and dried sorghum is unchanged at 2,240 yuan/tonne in Tianjin and 2,300 in Qingdao).
Domestic sorghum prices remain stable today. In Inner Mongolia, raw sorghum is not offered for out of stock and dried sorghum is 2,060 yuan/tonne in Hinggan League; raw sorghum and dried sorghum are 1,980 and 2,080 yuan/tonne in Chifeng; and raw sorghum is 1,960 yuan/tonne in Tongliao. In Jilin Province, dried sorghum with freight is 2,200 yuan/tonne in Changchun, raw sorghum sacks and dried sorghum with freight are both 2,100 yuan/tonne in Songyuan, bulk dried sorghum with freight is not offered in Baicheng, and raw sorghum and dried sorghum sacks are at 1,900 and 1,980 yuan/tonne in Taonan. In Heilongjiang Province, dried sorghum with freight is 1,900 yuan/tonne in Qiqihar; raw sorghum and dried sorghum with freight are 1,880 yuan/tonne and 1,960 yuan/tonne in Daqing, and raw sorghum is 1,900 yuan/tonne and sorghum with freight is 2,040 in Heihe. In Shanxi Province, raw sorghum is 2,100 yuan/tonne in Yuncheng, bulk dried sorghum with freight is 2,150 yuan/tonne in Jinzhong, and raw sorghum with freight and dried sorghum with freight are 1,960 and 2,160 yuan/tonne in Xinzhou.
Barley: Barley prices stay 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 6.77)
