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

Domestic corn prices rise further today. The price among deep-processing enterprises in Shandong prevails at 2,040-2,104 yuan/tonne with partial rises of 10-40 yuan/tonne compared to yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is respectively at 1,950-1,955 yuan/tonne (volume weight 700 g/L) and 1,960-1,965 yuan/tonne (volume weight 720 g/L), which are both up 10 yuan/tonne from yesterday. At Bayuquan port, the purchasing price of corn (volume weight 700-720 g/L) is 1,970-1,990 yuan/tonne up by 35 yuan/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price is raised to 2,080 yuan/tonne up by 10 yuan/tonne from yesterday.

The surplus corn in main producing area rests less than 10% nationwide, which has surpassed the sales pace of a year earlier. Moreover, markets are optimistic about the feed demand in and after the second quarter, raising traders’ reluctance in selling inventories in hand. And they tend to prop up price owing to the cost. Furthermore, the inventories of businesses are still lower than the same period last year, and the arrivals of corn in Shandong further decrease to around 200 trucks this morning. With fundamentals bolstering the market, the bullish sentiment ferments again. Today, corn prices further rise by 10-40 yuan among some enterprises in Shandong and generally move higher by 10-20 yuan/tonne at Southern ports. In consequence, corn price is expected to extend the strong trend before the policy-based auction. Nevertheless, recent news has it that the auction will be brought forward this year. And if the auction is not held on Apr. 23, it will be postponed to early May and the starting price will remain flat from last year. In addition, there are many rumors about policy flying around the market, like the supply of oriented-corn to deep-processing enterprises. For the moment, buyers can keep eyes on the movement of policy.

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2,700-2,800 yuan/tonne. Both farmers and traders have a strong sentiment for higher prices, as sorghum supplies are reducing and margins are growing. But imported sorghum is in huge volume and at relatively low prices, which will weigh on domestic sorghum market. Overall, domestic sorghum prices are predicted to maintain its stable trend.

Imported sorghum prices are flat today, of which US raw sorghum is quoted at 2060-2,070 yuan/tonne. There is no goods available at both Nantong port and Shanghai port, and only some small supply at Tianjin and Guangdong ports. But according to Cofeed, 5 cargoes of US sorghum, or about 339,000 tonnes, is expected to arrive in China in April, and another 3 cargoes, or about 193,000 tonnes, which have just been inspected, will also arrive in early May. Hence, imported sorghum prices are predicted to remain stable before those vessels arriving.

Imported barley prices are unchanged today. Farmers become active making hog replenishment due to considerable breeding margins at present, and the demand from egg-poultry breeding will also pick up. The market is positive about the prospect of feed demand from the second quarter, as feed mills have a decent demand recently. Traders tend to stall sales to prop up prices. Overall, imported barley price is predicted to stay stable.