Today (May 9), 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 2,220-2,260 CNY/tonne and up 10-30 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is flat from yesterday at 2,020 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,045-2,055 CNY/tonne (moisture 15% and volume weight 720 g/L), respectively. At Bayuquan port, the purchasing price of corn is 2,020-2,050 CNY/tonne (volume weight 700-720 g/L) unchanged with yesterday. At Shekou port, Guangdong, the second-class corn price remains at 2,140-2,150 CNY/tonne flat from yesterday.
For the moment, the remainder of 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. Due to the rainy weather, the morning arrivals of corn in Shandong lower to less than 100 trucks in nearly two days, and there are few arrivals 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 10-30 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. Moreover, 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.
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 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 ￥7.08)
