Today (Dec. 10), the market for grains in China is shown as follows:

Domestic corn price stays stable with slight fluctuations. The price prevails at 1,884-2,010 yuan/tonne among deep-processing enterprises in Shandong with individual adjustments of 4-10 yuan/tonne. At Jinzhou port, Liaoning, the purchasing price of new corn in 2019 (moisture 14.5% and test weight over 720 g/L) is 1,820-1,830 yuan/tonne and the FOB price is 1,870-1,880 yuan/tonne unchanged with yesterday; while the purchasing price of corn (moisture below 15% and test weight 690-700 g/L) is 1,800-1,810 yuan/tonne and the FOB price is 1,850-1,860 yuan/tonne the same as yesterday. At Shekou port, Guangdong, the second-class corn is priced at 1,990-2,000 yuan/tonne and individually traded at 1,970-1,980 yuan/tonne down by 10 yuan/tonne from yesterday.

The weather forecast issues a yellow alert for fog in parts of North China, limiting the transportation of corn. And the vehicles continue to decrease in Shandong in this morning, which leads several enterprises to slightly raise prices. In addition, farmers in parts of Northeast China are still reluctant to sell corn, which brings support for the market. Nevertheless, as of last Friday, the corn sales in Northeast area had finished about 26%. But over 70% of corn remains unsold in the late market. Furthermore, farmers in Northeast China will usually stop selling corn after the Little New Year, so there is only more than one month left, and the cycle continues to shorten. Besides, some farmers need to repay the loan before Spring Festival, and the market is still under pressure of phased supply. Thus, buyers had better take eyes on the pace of corn selling and the progress of stockpiling before New Year’s Day.

Domestic sorghum prices are stable with some rises today, of which dried sorghum is priced at 2,400-2,500 yuan/tonne nationwide. (In Heilongjiang, dried sorghum 2,240 in Qiqihar and 2,440 yuan in Heihe. In Inner Mongolia, raw sorghum 2,320 yuan/tonne and dried sorghum 2,440 yuan/tonne in Hinggan League, and 2019 dried sorghum 2,480 yuan/tonne in Chifeng. In Jilin Province, dried sorghum 2,500 yuan/tonne in Songyuan and 2,360-2,380 yuan/tonne in Baicheng, raw sorghum 2,340 yuan/tonne in Qian’an, and raw sorghum 2,340 yuan/tonne and dried sorghum 2,460 yuan/tonne in Taonan. In Shanxi, dried sorghum up 10 yuan to 2,650 yuan/tonne in Jinzhong.) 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 coming earlier than usual. But the weak demand is also weighing down the prices. So short-term prices are likely to keep steady with narrow fluctuations. 

Imported sorghum prices keep steady today at 2,200-2,400 yuan/tonne at domestic ports. (Guangdong port: US raw sorghum 2,130 yuan/tonne. Suqian: US sorghum 2,440 yuan/tonne.) In terms of prices, sorghum has lost a competitive advantage over corn, which in turn weighs down imported sorghum prices. However, it is still hard for US sorghum to go into Chinese market in the short term as there is no substantial progress in trade negotiations between the two countries. A lack of an effective rise in domestic supply is underpinning prices at ports. Short-term prices are predicted to keep steady with narrow fluctuations. Participants can pay attention to the outcome of trade negotiations.

Imported barley prices are flat today, of which Australian raw barley is 2,000-2,100 yuan/tonne at domestic ports. (Nantong port: Canadian raw barley for feed 1,850-1,860 yuan/tonne, French barley 1,776, and Ukrainian raw barley 1,730; Guangdong port: Ukrainian barley 1,740 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. And growing port supply is also weighing down the market. But importers have a strong intention to prop up prices due to low stocks in hand and stubbornly high import cost from Australia. Short-term prices are predicted to keep steady with narrow fluctuations.