Today (Apr. 21), the market for grains in China is shown as follows:
Corn:
Corn prices rise further in several regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,060-2,130 yuan/tonne with individual rises of 10-30 yuan/tonne compared to yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is respectively raised to 1,970 yuan/tonne (moisture 15% and volume weight 700 g/L) and 1,980-1,990 yuan/tonne (moisture 15% and volume weight 720 g/L), which are flat from yesterday. At Shekou port, Guangdong, the second-class corn price remains at 2,100 yuan/tonne unchanged with yesterday.
The sales progress in corn area has surpassed the pace of a year earlier, and surplus corn rests less than 10% nationwide. Moreover, markets are optimistic about the feed demand in and after the second quarter, raising traders’ reluctance in selling inventories in hand. Furthermore, the inventories of businesses are still lower than the same period last year, and the arrival of corn in Shandong further decreases to below 300 trucks again this morning. Thus, the fundamentals bull the market. Corn prices extend the rally in individual regions today and will maintain a strong trend before news released. Nevertheless, with the upcoming of the auction, there are many rumors flying around the market. And recent news has it that the auction will be brought forward this year and the starting price will remain flat from last year. It has been previously expected that the first round of auction will start on April 23, but there is no clear announcement as of today. Since the expectation has faded, participants can notice that whether the auction will be held in May 1st. In addition, there is news about the supply of oriented-corn to deep-processing enterprises. For the moment, buyers can keep eyes on the movement of policy, for which this may become next hot issue for speculation.
Sorghum:
Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 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 to some extent 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 2,060-2,080 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.
Barley:
Imported barley prices are stable with rises in some regions 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.
(USD $1=CNY ￥7.08)
