Today is 03/29/2024

Daily Review on Grain Market in China

2019-05-09 www.cofeed.com
  Today (May. 9th), the market for grains in China is shown as follows:
  
  Corn: Domestic corn prices mostly stay stable with slight corrections today. The price prevails at 1,854-1,990 yuan/tonne in Shandong. 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 1,980 yuan/tonne, and old corn is traded at 1,970 yuan/tonne.

  The United States announced that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent on Friday, and China’s Commerce Ministry said on its website last night that China would have to take necessary countermeasures; hence, trade war is escalating again. Besides, domestic farmers have almost sold out their corn stockpiles, and the market predicted that auction this year will be delayed until June, so traders in northeastern productions areas tend to lift prices amid a lengthened “window period” in corn market. Corn price has been raised up to 2,000 yuan/tonne by ome factories in Shandong today, and also keeps firm at ports with an outlook of 1,900 yuan/tonne at southern port. Later focus will be put on the schedule and minimum price of the auction, and corn price will maintain its strong trend before the auction notice. 
  
  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 Office of the U.S. Trade Representative announced that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent on May 10th, and China’s Commerce Ministry said on its website last night that China would have to take necessary countermeasures;hence, trade war is escalating again. 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 6.81)