Today (Dec. 17), the market for grains in China is shown as follows:

Domestic corn price stays stable with slight adjustment today. The price prevails at 1,884-2,000 yuan/tonne among deep-processing enterprises in Shandong individually down by 6-10 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 1,820 yuan/tonne down by 10 yuan/tonne from yesterday and the FOB price is 1,870 yuan/tonne; while the purchasing price of corn (moisture below 15% and test weight 690-700 g/L) is 1,800-1,805 yuan/tonne down by 5 yuan/tonne from yesterday and the FOB price is 1,850-1,855 yuan/tonne. 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 traded at 1,950 yuan/tonne down by 10 yuan/tonne from yesterday.

Although 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. Moreover, corn is still capped by import quotas every year, which has limit impact on market. Besides, some businesses will start a round of stockpiling before Spring Festival, which will offer support to market. Nevertheless, 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 volume put into market will be pushed forward steadily in the next days. Thus, the market is still under pressure of phased supply. The prices in individual regions decline further by 5-10 yuan/tonne, and will still move sideways weakly in recent days. In this case, buyers need to take eyes on the pace of corn selling, the progress of stockpiling before the Spring Festival, as well as the impact of weather variation.

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 traded at 2,400 yuan in Heihe. In Inner Mongolia, raw sorghum 2,340 yuan/tonne in 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 today at 2,200-2,400 yuan/tonne at domestic ports. (Nantong port: US raw sorghum 1,980-2,070 yuan/tonne; Guangdong port: US raw sorghum 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.