Today (May 7), the market for grains in China is shown as follows:
Corn:
Corn prices rise further in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,180-2,230 CNY/tonne and up 10-20 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,020 CNY/tonne (moisture 15% and volume weight 700 g/L) flat from yesterday and 2,045-2,055 CNY/tonne (moisture 15% and volume weight 720 g/L) up by 5 CNY/tonne from yesterday, respectively. At Shekou port, Guangdong, the second-class corn is priced at 2,150-2,160 CNY/tonne unchanged with yesterday.
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 170 trucks again, and there are few arrival at Northern ports and deep-processing enterprises. Besides, the resumption of charge for toll highway since May 6th also pulls up the cost. And today, corn price among some deep-processing enterprises continues increasing, with a rise of 10-20 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. Before the policy becomes clear, corn market will maintain a strong trend and stay at high levels on the whole, so buyers can wait for the public notice of auction.
Sorghum:
Domestic sorghum prices are stable 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 flat today, of which US raw sorghum is quoted at 2,090 CNY/tonne. There is no goods available at both Tianjin port and Shanghai port, and only some small supply at Guangdong ports, which support US sorghum prices to maintain a strengthening trend.
Barley:
Imported barley prices are stable with some mixed today. Hog and sow stocks continue rising moderately, adding to the demand for feed, and traders tend to stall sales to prop up prices, which are bullish to the market. Overall, imported barley price is predicted to stay stable.
(USD $1=CNY ￥7.09)
