Today (May 6), the market for grains in China is shown as follows:
Corn:
Domestic corn prices continue rising today. The price among deep-processing enterprises in Shandong prevails at 2,160-2,210 CNY/tonne and up 6-10 CNY/tonne compared with before holiday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,020 CNY/tonne (moisture 15% and volume weight 700 g/L) and up 10 CNY/tonne compared with before holiday. At Shekou port, Guangdong, the second-class corn is priced at 2,160 CNY/tonne flat from last Thursday.
The Labor Day holiday has gone, and the surplus corn has bottomed out. But traders with inventories in hand are reluctant to sell them with the policy auction being not announced. Thus, the circulation of corn in market is still restricted. The morning arrivals of corn in Shandong decrease to around 200 trucks again, and there are few arrival at Northern ports and deep-processing enterprises. And today, corn price among some deep-processing enterprises continues rising compared with before holiday, and the price rise significantly in Shandong, with a rise of 10-60 CNY/tonne. Nevertheless, corn prices up to high levels after a consecutive increase, and some enterprises are in a wait-and-see mood. Particularly feed mills mostly buy on immediate demand as they’ve already made replenishment in early stage. Besides, with the forthcoming of policy auction, some traders would sell part of corn inventory for making profits, which may limit the upward space of corn price in the near term. But the market will still maintain the high levels on the whole, so buyers can wait for the public notice of auction.
Sorghum:
Domestic sorghum prices are stable with some declines today, of which dried sorghum prices prevail at around 2,740-2,800 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, and warmer weather also makes it difficult to keep goods in stock, 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 higher today, of which US raw sorghum is quoted at 2,090 CNY/tonne. There is no goods available at both Nantong port and Shanghai port, and only some small supply at Tianjin and Guangdong ports, which support US sorghum prices to maintain a strengthening trend.
Barley:
Imported barley prices are stable with some mixed 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 ￥7.07)
