Today (Nov. 12), the market for grains in China is shown as follows:
Corn:
In some regions of China, corn prices are mostly stable and partially mixed today. The price prevails at 1,940-2,020 yuan/tonne among deep-processing enterprises in Shandong with some slight adjustments of 10-20 yuan/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of new corn in 2019 (moisture 14.5% and test weight over 720 g/L) is 1,850-1,860 yuan/tonne unchanged from yesterday, and the FOB price is 1,900-1,910 yuan/tonne; while the purchasing price of corn (moisture below 15% and test weight 690-700 g/L) is 1,830-1,835 yuan/tonne unchanged from yesterday and exit price is 1,880-1,885 yuan/tonne. At Bayuquan port, new corn in 2019 is priced at 1,815-1,820 yuan/tonne (test weight 700 g/L) unchanged with yesterday and 1,840 yuan/tonne (test weight 720 g/L) the same as yesterday. At Shekou port, Guangdong, the second-class corn is steadily traded at 1,970 yuan/tonne from yesterday.
Farmers in Northeast China are less reluctant to sale corn, so the arrivals of corn among deep-processing enterprises are dramatically higher in recent days. Besides, corn in surrounding area and Northeast also goes into local market after continuous increase in price. The morning volume among Shandong enterprises increases by more than 150 trucks from yesterday, and the price in some parts of Northeast and North China declines by 6-10 yuan/tonne. However, the corn stock in some enterprises is sufficient at the moment, and stock at ports stays stable temporarily before a sharp increase in arrivals. Therefore, buyers need to pay attention to the pace of corn selling. If the arrivals of corn continue to rise, the price may be under pressure of falling back. On the contrary, it will still be firm.
Sorghum:
Domestic sorghum prices are stable today, of which dried sorghum is priced at 2,360-2,500 yuan/tonne. (In Heilongjiang, dried sorghum 2,200 yuan/tonne in Qiqihar. In Inner Mongolia, dried sorghum 2,200 yuan/tonne in Qiqihar, rawsorghum2,260 yuan/tonne and dried sorghum 2,360 yuan/tonne in Hinggan League; 2019 dried sorghum2,440 yuan/tonne in Chifeng. In Jilin Province, dried sorghum2,460 yuan/tonne in Songyuan and 2,300-2,320 yuan/tonne in Qian’an, and raw sorghum2,300 yuan/tonne and dried sorghum2,380 yuan in Taonan.) Prices for new sorghum keep firm at present, which can be contributed to its smaller planting acreage, as well as lower quality and production due to the frost earlier than usual. But the weak demand is also weighing on the prices. So short-term prices are likely to keep steady with narrow fluctuations.
Imported sorghum prices steady today, of which Australian sorghum is priced at 2,400-2,500 yuan/tonne at domestic ports. (Tianjin port: Australian raw sorghum 2,400 and dried sorghum 2,500 yuan/tonne; US raw sorghum 2,130 and dried sorghum 2,270 yuan/tonne. Guangdong port: US raw sorghum 2,120 yuan/tonne. Suqian: US sorghum 2,420 yuan/tonne.) In terms of prices, sorghum has lost a competitive advantage over corn. Besides, hog prices have begun to fall recently. The time for China and the United States to sign their phase one deal is expected to draw near, and the Chinese yuan has soared past 7, which will reduced the import cost. These factors are dragging down imported sorghum prices. However, it is hard for US sorghum to go into Chinese market due to the trade frictions. Sorghum supply sees very few increases in China now, which is a support to the prices at ports. Short-term prices are predicted to keep steady with narrow fluctuations. Participants can pay attention to the outcome of trade negotiations.
Barley:
Imported barley prices remain unchanged today, of which Australian raw barley is at 2,120-2,130 yuan/tonne at domestic ports. (Nantong port: Canadian raw feed barley1,870 yuan/tonne, Australian raw barley 2,080-2,100, French barley 1,770-1,780, and Ukrainian raw barley 1,720-1,730; Guangdong port: Ukrainian barley 1,730 yuan/tonne.) In terms of prices, barley has lost a competitive advantage over corn. And the demand from hog breeding is also small due to the African swine fever, which is a curb on the spot market. Barley imports total 5 cargoes, or around 296,000 tonnes, for October shipments in South China. Growing port supply is now weighing down the market. But importers have a strong intention to prop up prices due to low stocks and stubbornly high import cost from Australia. Short-term prices are predicted to keep steady with narrow fluctuations.
(USD $1=CNY 6.99)
