Today (Dec. 12), the market for grains in China is shown as follows:

Today, domestic corn price mostly keeps steady but individually declines slightly. The price prevails at 1,884-2,000 yuan/tonne among deep-processing enterprises in Shandong with slight fluctuations of 10-20 yuan/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of new corn in 2019 (moisture 14.5% and test weight over 720 g/L) is 1,820-1,830 yuan/tonne and the FOB price is 1,870-1,880 yuan/tonne the same as yesterday; while the purchasing price of corn which 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 unchanged from yesterday. At Shekou port, Guangdong, the second-class corn is priced at 1,990-2,000 yuan/tonne but individually traded at 1,970-1,980 yuan/tonne steadily from yesterday.

According to the normal habit of selling corn of farmers in Northeast China, they will discontinue the sale after the Little New Year, so there is only more than one month left, and the cycle keeps shortening. Besides, some farmers need to repay the loan before Spring Festival. 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. Thus, the market is still under pressure of phased supply. The price of corn drops by 4-10 yuan/tonne in individual regions today. Nevertheless, some businesses will start a round of stockpiling before Spring Festival, which will provide support for market. And recent corn market will move sideways steadily and slightly. Therefore, 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 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 2,650 yuan/tonne in Jinzhong.) Prices for new sorghum keep firm at present, which can be contributed to its smaller planting acreage, lower quality and production due to the frost coming earlier than usual and less surplus sorghum than last year in many regions. 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.