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Daily Review on Grain Market in China--3/31/2020

2020-03-31 www.cofeed.com
Today (Mar. 31), the market for grains in China is shown as follows:

Corn:

Domestic corn prices rise further in some regions today. The price prevails at 1,946-2,030 yuan/tonne with a partial rise of 10-20 yuan/tonne compared to yesterday among deep-processing enterprises in Shandong. At Jinzhou port, Liaoning, some traders offer the purchasing price at 1,915-1,940 yuan/tonne up by 15 yuan/tonne from yesterday (moisture 14.5% and test weight 700-720 g/L). At Bayuquan port, the purchasing price keeps at 1,905-1,925 yuan/tonne (test weight 700-720 g/L). At Shekou port, Guangdong, the second-class corn transaction price is raised to 2,040-2,050 yuan/tonne, and price at high level is up 10 yuan/tonne from yesterday.

At present, the surplus corn in main producing area bottoms out and rests less than 15% nationwide, which has surpassed the pace of a year earlier. Under the support of expected-higher reserve price of auction and renewal of reserved corn, traders around the country are active in replenishing corn. Among that, major traders at Northern ports continue raising price to purchase goods. In addition, the arrivals in North China have been decreasing since last week. Although the arrival slightly increases today, it totals less than 400 trucks. Besides, the ground-corn (which reserves on the floor) in Northeast China has been sold out, and some of the stocks are transferred to traders. But farmers are in no hurry to sell the rest loft-corn (which reserves in loft). Furthermore, deep-processing enterprises in some regions need to make replenishment as the inventories are still lower than the same period last year. Accordingly, bullish fundamentals push domestic corn price higher by 10-30 yuan/tonne in some enterprises and at ports. Thus, the overall market will maintain a strong trend recently, and buyers can pay attention to the later auction. 

Sorghum:

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2,500-2,560 yuan/tonne. Currently, sorghum supply is gradually 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 today, of which US raw sorghum is quoted at 1,980-2,020 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. But port stocks are relatively low at present, so traders tend to support the prices, which bolsters imported US sorghum prices to keep strengthening.

Barley:

Imported barley prices are unchanged today. Farmers become active making hog replenishment due to considerable margins at present. And the demand from egg-poultry breeding will also pick up as schools will open gradually. The demand for barley is decent recently, and barley stocks are relatively small now, so traders tend to stall sales to prop up prices. Overall, imported barley price is predicted to stay stable. 

(USD $1=CNY ¥7.09)