Today (May 20th), the market for grains in China is shown as follows:
Corn: Domestic corn prices continue rises today. The price prevails at 1,944-2,060 yuan/tonne in Shandong, down by 10-20 yuan/tonne from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is unchanged at 1,880-1,900 yuan/tonne. At Bayuquan port, 2018 new corn is priced higher by 10 yuan at 1,890-1,905 yuan/tonne (volume weight 690 g/L and moisture 14.5%). At Shekou port, Guangdong, second-class corn is offered higher at 2,050 yuan/tonne and expected to be traded higher by 20 yuan from yesterday at 2,040 yuan/tonne.
Corn prices have seen consecutive rises among further processing enterprises in Shandong, of which Ensign Industry has raised the price to its highest level of 2,060 yuan/tonne within this year. Traders become willing to sell in view of broadened profit space, sending the volume of corn arriving at factories to increase rapidly in recent two days, so that some enterprises have again cut the price. However, temporary-reserved corn is scheduled to be auction with 4 mln tonnes at first round and minimum price raised higher by 200 yuan/tonne, which will significantly drive up cost. Besides, it is unlikely that China will open its grain import for some time amid huge uncertainties in trade war, and farmers have sold out their corn in northeastern and northern areas. Therefore, corn market will continue to receive support from growing cost and a tight supply outlook. The price has seen another rise of 10-20 yuan/tonne at ports today. Overall, corn market will extend its fluctuations at high levels, and later focus can be put on U.S.-China trade talks and the auctions.
Sorghum:
Imported sorghum prices edge down today. (U.S. raw sorghum is priced steadily at 2,160 yuan/tonne in Shanghai, 2,160 in Nantong and not offered for out of stock in Zhangjiagang and Guangdong; Australian sorghum: raw sorghum is unchanged at 2,200 yuan/tonne in Tianjin, 2,200 in Shanghai and 2,200 in Qingdao, and prices lower by 10 yuan at 2,300 yuan/tonne in Nantong, and dried sorghum remains unchanged at 2,240 yuan/tonne in Tianjin and 2,300 in Qingdao).
Domestic sorghum prices go up today. In Inner Mongolia, raw sorghum is not offered for out of stock and dried sorghum is 2,140 yuan/tonne in Hinggan League; raw sorghum is priced higher by 20 yuan at 2,060 and dried sorghum higher by 80 yuan at 2,240 yuan/tonne in Chifeng; and raw sorghum is not offered in Tongliao. In Jilin Province, dried sorghum with freight is 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 is priced higher by 60 yuan at 2,000 yuan/tonne in Qiqihar; raw sorghum is not offered and dried sorghum with freight is raised higher by 20 yuan to 2,200 yuan/tonne in Daqing, and raw sorghum is 1,900 yuan/tonne and dried sorghum is 2,040 in Heihe. In Shanxi Province, raw sorghum is 2,100 yuan/tonne in Yuncheng, bulk dried sorghum with freight is 2,200 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 step down today. (Australian barley: raw sorghum remains unchanged at 2,220 yuan/tonne in Qingdao and and bulk raw sorghum at 2,220 in Nantong; Canadian barley: raw barley is priced steadily at 2,120 yuan/tonne and for brewing is 2,180 yuan/tonne in Nantong, and raw sorghum goes down by 10 yuan to 2,090 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. 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 6.91)
