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Daily Review on Grain Market in China--12/09/2019

2019-09-12 www.cofeed.com
Today (Sept. 12th), the market for grains in China is shown as follows:

Corn:

Domestic corn price stays stable with slight adjustment in some regions today. The price prevails at 2,000-2,070 yuan/tonne among deep-processing enterprises in Shandong with some adjustments. At Jinzhou port, Liaoning, corn with 14.5% moisture and test weight over 700 g/L is steady at 1,850 yuan/tonne from yesterday. At Bayuquan port, old corn is priced steadily at 1,820 yuan/tonne (test weight 690-700 g/L and moisture 14.5%) from yesterday, and new corn is quoted steadily at 1,840 yuan/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price is raised to 1,980 yuan/tonne up by 10 yuan/tonne from yesterday.

The auction rate of temporary-reserved corn is 7.5% which still stays at a low level, and traders are lack of confidence to the market outlook. Besides, the rotating grain in northeastern areas is entering market successively, and the marketing of new corn in North China will speed up after mid-September, so new corn is in adequate supply. On the other side, deep-processing enterprises mainly use their own stockpiles, and the hog herd still stays at a low level, so feed enterprises tend to buy on immediate demand. Therefore, the market is still curbed by fundamental contradictions. Corn prices are mostly stable with slight fluctuations of 10-20 yuan/tonne today, and short-term corn prices will probably stay stable with slight declines. More attention could be paid to the sales quantity in new corn regions.

Sorghum:

Imported sorghum prices keep steady today. (U.S. sorghum: raw sorghum is 2,220 yuan/tonne at Tianjin port, not offered for out of stock in Shanghai, 2,200 yuan in Nantong, not offered in Zhangjiagang, and 2,200 yuan in Guangdong, an dried sorghum is 2,340 yuan/tonne at Tianjin port; Australian sorghum: bulk raw sorghum is2,400 yuan/tonne in Tianjin and raw sorghum is out of stock in Shanghai, Qingdao and Nantong, and dried sorghum is2,500 yuan/tonne in Tianjin and out of stock in Qingdao).

Domestic sorghum prices stay stable today. In Inner Mongolia, raw sorghum is2,200 and dried sorghum is 2,300 yuan/tonne in Hinggan League; raw sorghum is not offered and dried sorghum 2,320 in Chifeng; and dried 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 2,200 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 2,160 yuan/tonne in Qiqihar; dried sorghum with loading is2,300 yuan/tonne in Daqing, and raw sorghum is 1,900 yuan/tonne and dried sorghum is 2,040 yuan in Heihe. In Shanxi Province, raw sorghum is 2,100 yuan/tonne in Yuncheng, bulk dried sorghum with freight is2,440 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: 

Imported barley prices remain unchanged today. (Australian barley: raw sorghum is out of stock in Qingdao and Tianjin and bulk raw sorghum is2,200 yuan/tonne in Nantong; Canadian barley: raw barley is1,870 yuan/tonne and for brewing is out of stock in Nantong, and raw sorghum is 1,920 yuan/tonne at Qingdao port; French barley: raw barley is 2,100 yuan/tonne at Qingdao port and 1,840 yuan/tonne in Nantong; Ukrainian barley: raw sorghum is 1,760 yuan/tonne in Guangdong; Kazakhstan barley: raw barley is 2,100 yuan/tonne at Tianjin port and 1,580-1,620 yuan/tonne at Alashankou pass, Xinjiang).

Domestic barley price is flat today: it is 1,850 yuan/tonne in Heilongjiang. 

Importers with storage in hand are propping up prices on account of low barley inventories at ports and stubbornly high cost of Australian barley. However, sorghum price is now dragged down by weak demand due to falling corn prices.Meanwhile, port sorghum and barley have lost their price advantage against corn as its energy feed substitutes. Besides, 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 market participants can focus on the outcome of trade talks.

(USD $1=CNY 7.08)