Today is 05/05/2024

Daily Review on Grain Market in China

2019-05-31 www.cofeed.com
  Today (May 31st), the market for grains in China is shown as follows:
  
   Corn: Domestic corn prices stay stable with some adjustments today. The price prevails at 2,010-2,120 yuan/tonne with slight fluctuations in Shandong today. At Jinzhou port, Liaoning, corn with 14.5% moisture, volume weight over 700 g/L, mildew within 2%, 1% heat damage and 6%-8% unsound grain is priced down by 10 yuan at 1,910-1,920 yuan/tonne. At Bayuquan port, 2018 new corn goes down by 10 yuan to 1,900-1,910 yuan/tonne (volume weight 690 g/L and moisture 14.5%). At Shekou port, Guangdong, second-class corn is traded at around 2,000 yuan/tonne and some even at 1,980-1,990 yuan/tonne. 

  The second auction of temporary-reserved corn has wrapped up with fair trading, but the premiums have fallen; hence, the market sentiment gets curbed. Moreover, breeding enterprises are in deep water due to the ongoing swine epidemic, especially in Guangdong and Guangxi, and corn market has thus been trapped in slow shipment by subdued feed demand. Corn prices decline by 10 yuan/tonne at ports today, yet still with some potential for corrections. However, delivery cost in the auction still remains at a high level. And 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, corn will probably remain high. Participants can pay attention to the auction and the market demand. 
  
  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 stay stable 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 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 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 6.91)