Today (Apr. 24), the market for grains in China is shown as follows:

Corn prices rise further in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,080-2,180 CNY/tonne with partial rises of 10-30 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is respectively raised to 1,980-1,990 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,010 CNY/tonne (moisture 15% and volume weight 720 g/L), which is both up 10 CNY/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price remains at 2,110 CNY/tonne up by 10 CNY/tonne from yesterday.

The surplus corn rests less than 10% nationwide, and some inventories have been transferred to traders. Moreover, markets are optimistic about the market outlook, raising traders’ reluctance in selling inventories in hand. Furthermore, the inventories among deep-processing enterprises are still lower than the same period last year and are only enough to maintain for 10-15 days in individual Northeast enterprises. And the arrival of corn in Shandong further decreases to below 200 trucks again this morning. Thus, the fundamentals bull the market. Corn prices further increase by 10-20 CNY/tonne in some regions and ports today and will maintain a strong trend before news released. Nevertheless, with the upcoming of the auction, feed enterprises become less willing to purchase corn before the policy getting clear and take a hand-to-mouth buying strategy. Besides, imported corn and its substitutes arrive at ports successively. In addition, 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.

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2,800 CNY/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 2,080 CNY/tonne. There is no goods available at both Nantong port and Shanghai port, and only some small supply at Tianjin and Guangdong ports. However, in the week ending April 16th, US sorghum exports to China mainland totaled 134,025 tonnes, with a total of 597,386 tonnes since March, according to USDA weekly report on exports for inspected. Hence, imported sorghum prices are predicted to remain stable before those vessels arriving.

Imported barley prices are stable 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.