Today (Mar. 20), the market for grains in China is shown as follows:

Domestic corn prices go up slightly in some regions today. The price prevails at 1,896-1,974 yuan/tonne with partial slight rises of 6-10 yuan/tonne compared to yesterday among deep-processing enterprises in Shandong. At Jinzhou port, Liaoning, some traders offer the purchasing price at 1,875-1,900 yuan/tonne flat from yesterday (moisture 14.5% and test weight 700-720 g/L). At Bayuquan port, the purchasing price of new corn of 2019 is 1,880-1,890 yuan/tonne unchanged from yesterday (test weight 690-700 g/L). At Shekou port, Guangdong, the second-class corn price remains at 1,975-1,985 yuan/tonne, which is unchanged with yesterday.

Domestic surplus corn in producing area is decreasing continually, among which the rest of corn in Northeast is less than 20%. Although many enterprises have made replenishment in succession, the stocks in northeast deep-processing enterprises are still lower than a year earlier. Besides, the rumor that the reserve price for auction increases by 50-70 yuan/tonne leads optimism around the market. With the weather warming up in North China, the moisture content of wet corn gradually decreases. As a result, farmers slow down the sales pace. And buyers enter the market to purchase dry corn, which also offers support to market. Such being this case, the fundamentals still look bullish for market. Today, some deep-processing enterprises continue raising price by 6-10 yuan/tonne. In addition, the sales of most feed enterprises have been in decline in March. Particularly in North China, the poultry feed sales have decreased by 20%-40%. This affects feed enterprises’ initiative in purchasing corn. With the surplus corn decreasing gradually, the price will still be strong. 

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2500-2600 yuan/tonne. Traders are gradually back to the market, while sorghum supply is lessening, so both farmers and traders have a strong sentiment to prop up prices. But imported sorghum are in huge volume and of low prices, which will weigh on domestic sorghum market. Overall, domestic sorghum prices are predicted to maintain its stable trend.

Imported sorghum prices keep steady, of which US raw sorghum is quoted at 1,980 yuan/tonne. Chinese importers are purchasing US sorghum after getting tariff exemptions. Around 5 cargoes will arrive in China as of June, according to Cofeed. Sorghum imports from the US will gradually increase, which will thus weigh on prices in the market.

Imported barley prices remain stable today. Logistics are recovering as more regions clear the blockade in roads, and enterprises have also resumed work and imports. Moreover, breeding industry is slow in recovering, so feed enterprises are mostly taking hand-to-mouth buying, which is also a constraint on the market. In addition, there are concerns over a slowdown in domestic economic growth due to the spread of the epidemic. Currently, markets have some difficulty making contacts, so barley trading volume is limited. Overall, imported barley price is predicted to stay stable.