Today (Aug. 6th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable with slight corrections today. The price prevails at 2,040-2,100 yuan/tonne in Shandong with some ups and downs from yesterday. At Jinzhou port, Liaoning, corn with 14.5% moisture and test weight over 720 g/L is priced steadily at 1,880-1,910 yuan/tonne. At Bayuquan port, 2018 new corn is priced steadily at 1,840-1,860 yuan/tonne (test weight 690 g/L and moisture 14.5%) and new corn is priced at 1,870-1,880 yuan/tonne. At Shekou port, Guangdong, second-class corn is quoted steadily at around 2,000 yuan/tonne and some at 1,990 yuan/tonne.
Further processing companies are weak in purchasing due to dismal margins and adequate stockpiles. Meanwhile, traders in Northeastern China have been holding relatively adequate stockpiles in hand, and the lingering African swine fever, which is still not under effective control, has been depressing the sentiment of feed enterprises in purchase. Therefore, corn market is still curbed by its weak fundamentals. But corn inventory has fallen from a high level both at Northern and Southern ports, where there are also price inversions, so traders with corn in hand are trying to raise prices. In a hybrid of the bull and the bear, the market stays stable today and will keep steady to consolidate in the short term.
Sorghum:
Imported sorghum prices step down today. (U.S. sorghum is not offered for out of stock in Shanghai, Nantong, Zhangjiagang and Guangdong; Australian sorghum: raw sorghum is down by 130 yuan to 2,260 yuan/tonne in Tianjin, unchanged at 2,200 in Qingdao and out of stock in Nantong, and dried sorghum is down by 130 yuan to 2,370 yuan/tonne in Tianjin and unchanged at 2,300 in Qingdao).
Domestic sorghum prices stay stable today. In Inner Mongolia, raw sorghum is 2,140 and dried sorghum is 2,300 yuan/tonne in Hinggan League; raw sorghum is not offered and dried sorghum 2,320 in Chifeng; and raw sorghum 2,200 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 2,000 yuan/tonne in Qiqihar; dried sorghum with loading is 2,260 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 loading are 1,960 and 2,160 yuan/tonne in Xinzhou.
Barley: Barley prices are mixed today. (Australian barley: raw sorghum is out of stock in Qingdao and bulk raw sorghum goes up by 190 yuan to 2,180 yuan/tonne in Nantong; Canadian barley: raw barley is down by 80 yuan to 1,850 yuan/tonne and for brewing is out of stock in Nantong, and raw sorghum is 1,920 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. However, port sorghum and barley have lost their price advantage against corn as its energy feed substitutes. Meanwhile, the African swine fever has roiled the original trend of hog breeding cycle in China. Small and medium-size farms have withdrawn from the market and quickened the elimination of breeding sow since the first outbreak last year, and the pig amount has fiercely cut in those provinces reported with more outbreaks. Thus, it will be hard for farmers to rebuild confidence in short time under the heavy blow of the ASF, so that the hog and sow amount has been decreasing. 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 6.97)
