Today (May 28th), the market for grains in China is shown as follows:
Corn: Domestic corn prices extend rises today. The price prevails at 2,010-2,130 yuan/tonne in Shandong, broadly up by 10-30 yuan/tonne from last Friday. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced steadily at 1,910-1,930 yuan/tonne. At Bayuquan port, 2018 new corn remains unchanged at 1,910-1,920 yuan/tonne (volume weight 690 g/L and moisture 14.5%). At Shekou port, Guangdong, second-class corn (volume weight above 685 g/L from Liaoning and Jilin, with less than 2% mildew, 2% singe, 15% moisture and 1% impurity) is offered at 2,040-2,050 yuan/tonne and is predicted to be traded at 2,030 yuan/tonne and some at 2,000 yuan/tonne.
The African swine fever is still spreading, resulting in a severer-than-expected situation in Guangdong and Guangxi, so that hog breeding is quite negative. Feed demand remains weak as relevant enterprises show little interest in purchasing. Amid slow shipment in the market, corn prices reverse to steady at ports, of which it is quoted higher yet traded lower at southern ports. However, the first round of auction has stunned the market with high premiums which has further pushed up the delivery cost. And traders become more bullish about the market after the first auction. Besides, U.S. grains can hardly find a channel to enter into China amid huge uncertainty in trade talks. Under such supply tensions and the push by high cost, Shandong further processing enterprises continue to raise their prices today. Overall, corn will probably remain high, and participants can pay attention to the market this week as the price will fluctuate on the back of auction cost.
Sorghum:
Imported sorghum prices are flat 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 2,220 yuan/tonne in Tianjin, 2,200 in Qingdao and 2,320 yuan/tonne in Nantong, and dried sorghum is 2,320 yuan/tonne in Tianjin and remains unchanged at 2,300 in Qingdao).
Domestic sorghum prices post rises today. In Inner Mongolia, raw sorghum is 2,140 yuan/tonne and dried sorghum 2,200 yuan/tonne in Hinggan League; raw sorghum and dried sorghum are unchanged at 2,100 at 2,280 yuan/tonne in Chifeng; and raw sorghum is not offered in Tongliao. In Jilin Province, dried sorghum is 2,300 yuan/tonne in Changchun; raw sorghum sacks and dried sorghum with loading are both 2,100 yuan/tonne in Songyuan, sorghum is out of stock 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 loading is 2,060 yuan/tonne in Qiqihar; raw sorghum is not offered and dried sorghum with loading is 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 priced higher by 20 yuan at 2,300 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 keep steady 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 is 2,080 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 6.90)
