Today (Dec. 16), the market for grains in China is shown as follows:

Domestic corn price keeps falling in some regions today. The price prevails at 1,874-2,000 yuan/tonne among deep-processing enterprises in Shandong and partially down by 4-10 yuan/tonne from last Friday. 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 from last Friday; 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 flat with yesterday. At Bayuquan port, new corn in 2019 is traded at 1,790-1,800 yuan/tonne (test weight 690-700 g/L) unchanged with yesterday and 1,810 yuan/tonne (test weight 720 g/L) the same as yesterday. At Shekou port, Guangdong, the second-class corn is priced at 1,970 yuan/tonne but individually traded at 1,950-1,960 yuan/tonne down by 10 yuan/tonne from last Friday.

December is halfway over. According to the normal habit of selling corn of farmers in Northeast China, they will discontinue the sale after the Little New Year, so the cycle of sales shortens to one month only. Besides, some farmers need to repay the loan before the Spring Festival. And the marketing volume will be pushed forward steadily in the next days. Thus, the market is still under pressure of phased supply, and the prices in Southern and Northern areas declines further by 6-10 yuan/tonne. Nevertheless, some businesses will start a round of stockpiling before Spring Festival, which will provide support for market. In addition, though China and U.S. have agreed on the phase one trade deal, the market response has become dull over the nearly two years of back-and-forth negotiations. On the other hand, corn is still capped by import quotas every year, which has limit impact on market. In this case, buyers need to take eyes on the pace of corn selling and the progress of stockpiling before the Spring Festival.

Domestic sorghum prices are stable with rises in some regions today, of which dried sorghum is priced at 2,400-2,500 yuan/tonne nationwide. (In Heilongjiang, dried sorghum 2,240 in Qiqihar and traded at 2,400 yuan in Heihe. In Inner Mongolia, raw sorghum up 20 yuan to 2,340 yuan/tonnein Hinggan League and dried sorghum 2,500 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 with a decline in some regions today at 2,200-2,400 yuan/tonne at domestic ports. (Nantong port: US raw sorghum down 30 yuan to 1,980-2,070 yuan/tonne; Guangdong port: US raw sorghum down 30 yuan to 2,100 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. And after the signing of a trade deal officially, China will substantially increase imports of agricultural products from the United States, including soybean, corn, sorghum, barley, wheat, DDGs, pork and poultry meat. Short-term sorghum price is predicted to keep steady with a slight decline. 

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.