Today (Jan. 2), the market for grains in China is shown as follows:

Domestic corn price stays stable with slight fluctuations. The price prevails at 1,856-1,980 yuan/tonne among deep-processing enterprises in Shandong and some down by 4-20 yuan/tonne compared with New Year’s holiday ago (Dec. 31). 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 unchanged from yesterday and the FOB price is 1,870 yuan/tonne; while the purchasing price of corn (moisture below 15% and test weight 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 Bayuquan port, new corn in 2019 is traded at 1,790-1,800 yuan/tonne (test weight 690-700 g/L) unchanged with New Year’s holiday ago (Dec. 31) and 1,810 yuan/tonne (test weight 720 g/L) the same as yesterday. At Shekou port, Guangdong, the second-class corn is steadily traded at 1,950 yuan/tonne from New Year’s holiday ago (Dec. 31).

New Year’s Day has been over, and farmers usually discontinue the sale after the Little New Year according to the habit of selling grain on the market, so there is less than half a month left to sell corn. But some farmers have to sell corn for cash before Spring Festival, so the volume put into market still be pushed forward steadily in the next days. And recent arrivals of cargoes in North China belt and at Southern ports increase significantly. Thus, the market is still under pressure of phased supply. Today, the price in most of deep-processing enterprises in North China down by 6-20 yuan/tonne compared with New Year’s Day ago. Furthermore, some deep-processing enterprises and feed factories will replenish inventory before Spring Festival, which will offer support to market. Therefore, price declines of spot goods will be restricted, and it is expected that short-term corn market still remains flat with slight falls.

Domestic sorghum prices are stable today, of which dried sorghum is priced at 2,400-2,500 yuan/tonne nationwide. (In Heilongjiang, dried sorghum 2,200 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 2,540 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 2,360 yuan/tonne in Taonan. In Shanxi, dried sorghum 2,650 yuan/tonne in Jinzhong. In Liaoning, dried sorghum 2,520-2,560 yuan/tonne in Jianping.) 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 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. The latest cargo loading with 5,000 tonnes of US sorghum has arrived at Tianjin port, thus increasing domestic supply. Short-term sorghum price is predicted to keep steady with a slight decline. 

Imported barley prices are flat with some declines 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 down 16 yuan at 1,750-1,760 and Ukrainian raw barley down 10 yuan at 1,720; Guangdong port: Ukrainian barley 1,780 yuan/tonne; Alataw Pass: Kazakhstan barley at 1,475 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.