Today (Jun. 27th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable with some adjustments today. The price prevails at 2,028-2,050 yuan/tonne in Shandong today, some further down by 4 yuan/tonne from yesterday. 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 steadily at 1,850-1,880 yuan/tonne. At Bayuquan port, 2018 new corn is priced steadily at 1,860-1,870 yuan/tonne (volume weight 690 g/L and moisture 14.5%). At Shekou port, Guangdong, second-class corn is predicted to be traded at around 1,950 yuan/tonne.
U.S. President Donald Trump said an additional tariff of 10% would be placed on the remaining $300 billion of Chinese imports if there was no progress after his meeting with Chinese counterpart Xi Jinping this Saturday, according to a report by Bloomberg. Therefore, it is still early to expect a trade deal in the talks. Besides, the market is propping up prices on account of price inversions in both northern and southern ports, so corn prices stay stable today at ports. However, the sixth round of corn auction has completed with its trading rate falling to 33.57%, compared to 46.11% in previous week. And auctioned corn from Northeast regions has been flowing into the market, creating a loose supply outlook currently. In the meantime, the African swine fever, which is reported in Hunan and Hubei again and has resulted in a breeding pig reduction in particular in South China, is still a little out of reach, so feed enterprises have showed little interest in purchase, resulting in weak shipments at ports. Overall, corn prices will probably be weighed down by fundamentals to edge lower in the short term.
Sorghum:
Imported sorghum prices post rises today. (U.S. sorghum is not offered for out of stock in Shanghai, Nantong, Zhangjiagang and Guangdong; Australian sorghum: raw sorghum is priced higher by 80 yuan at 2,380 yuan/tonne in Tianjin, unchanged at 2,200 in Qingdao and out of stock in Nantong, and dried sorghum goes up by 90 yuan to 2,490 yuan/tonne in Tianjin and remains unchanged at 2,300 in Qingdao).
Domestic sorghum prices keep steady today. In Inner Mongolia, raw sorghum is 2,200 and dried sorghum 2,300 yuan/tonne in Hinggan League; raw sorghum is not offered and dried sorghum 2,300 in Chifeng; and raw sorghum 2,200 in Tongliao. In Jilin Province, dried sorghum 2,400 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; 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 2,400 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 is out of stock in Qingdao and bulk raw sorghum 2,200 in Nantong; Canadian barley: raw barley is priced lower by 10 yuan at 2,060 yuan/tonne and for brewing is unchanged at 2,180 yuan/tonne in Nantong, and raw sorghum is 2,070 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 statistics from China’s Ministry of Agriculture and Rural Affairs, hog in breeding in May has declined by 4.2% from April and by 22.9% from the corresponding period last year, and reproductive sow has declined by 4.1% from last month and by 23.9% from a year earlier. 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. 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 6.88)
