Today is 03/29/2024

Daily Review on Grain Market in China

2019-05-13 www.cofeed.com
  Today (May. 13th), the market for grains in China is shown as follows:
  
  Corn: Domestic corn prices still run on a strong trend today. The price prevails at 1,876-2,020 yuan/tonne in Shandong, some rising by 10-20 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 goes up 15-20 yuan to 1,850-1,860 yuan/tonne (volume weight 700 g/L). At Shekou port, Guangdong, second-class new corn is offered at 1,980 yuan/tonne.
  
  The eleventh round of trade talks between China and the United States in Washington on May 9-10th wrapped up and drew global attention, according to Xinhua News. During the talks, the United States officially raised its additional tariffs on Chinese imports from 10% to 25%. Therefore, it is unlikely that China will open its grain import for some time amid an escalation of trade disputes. In addition, 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 lit prices amid a lengthened “window period” in corn market. Corn price has got over the threshold of 2,000 yuan to hit 2,020 yuan/tonne in Shandong and has risen to 1,980 yuan/tonne at Guangdong port today. 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 go up today. (U.S. raw sorghum is priced steadily at 2,160 yuan/tonne in Shanghai, higher by 40 yuan at 2,160 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, goes up by 40 yuan at 2,200 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 post rises today. In Inner Mongolia, raw sorghum is not offered for out of stock and dried sorghum is up by 80 yuan at 2,140 yuan/tonne in Hinggan League; raw sorghum is up by 40 yuan at 2,040 and dried sorghum by 60 yuan at 2,160 yuan/tonne in Chifeng; and raw sorghum is not offered in Tongliao. In Jilin Province, dried sorghum with freight is up by 40 yuan at 2,240 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 goes up by 40 yuan to 1,940 yuan/tonne in Qiqihar; raw sorghum is not offered and dried sorghum with freight goes higher by 120 yuan to 2,180 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. According to Cofeed, by the end of April, 500 enterprises surveyed has a total of 13,736,781 pigs in breeding, a reduction of 112,890 by 0.82% from 13,849,671 month on month. And for the 464 enterprises surveyed, sow number totals 1,292,659 in late April, down 6,864 by 1.29% from 1,309,523 month on month. The African swine fever 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. Besides, the United States has officially raised its additional tariff on $200 billion worth of Chinese goods from 10% to 25%, and Beijing government said immediately after the midnight ET deadline that it deeply regret and would take necessary countermeasures. Generally, port sorghum and barley markets are predicted to keep steady with some fluctuations in the short term, and port sorghum market may be buoyed again by concerns over trade disputes, so participants and focus on the outcome of trade talks.  

(USD $1=CNY 6.83)