Today (Apr. 26), the market for grains in China is shown as follows:
Corn:
Corn prices rise further in China today. The price among deep-processing enterprises in Shandong prevails at 2,130-2,200 CNY/tonne with a rise of 20-60 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 1,990-1,995 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,010 CNY/tonne (moisture 15% and volume weight 720 g/L) respectively, which is flat from yesterday. At Shekou port, Guangdong, the second-class corn price is raised to 2,120-2,130 CNY/tonne up by 10-20 CNY/tonne from yesterday.
There are many rumors flying around the market recently. And previous news has it that the auction will be in late April or early May, but there is no clear announcement as of today. With the disconfirmed expectancy, there is news that the auction is delayed to mid or late May. But for the moment, the surplus corn bottoms out, and some inventories are transferred to traders. Moreover, markets are optimistic about the market outlook and there have been no clear details to release, 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 around 100 trucks this morning. Thus, the phased supply gets tight. Meanwhile, corn prices in main area and at ports all further increase by 20-60 CNY/tonne today and will maintain a strong trend before news released. As there is still room for additional advances in corn price, buyers can keep close eyes on it.
Sorghum:
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.
Barley:
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.
(USD $1=CNY ￥7.08)
