Today (May 12), the market for grains in China is shown as follows:
Corn:
Corn prices continue falling back in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,190-2,240 CNY/tonne with a decline of 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 2,040-2,045 CNY/tonne (moisture 15% and volume weight 720 g/L) down by 5-10 CNY/tonne from yesterday, 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 is priced at 2,110-2,120 CNY/tonne, which lowers 20-30 CNY/tonne than yesterday.
Corn price has increased to high levels for the moment, 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. Meanwhile, the forthcoming auction coupled with stocks clear before wheat harvest, lead traders around North China to be more willing to sell corn. Consequently, the morning arrivals of corn rise to around 1,700 trucks today. And corn price among some local enterprises falls by 10-20 CNY/tonne. In addition, imported corn and grain are arriving at ports successively, so traders who have inventory in hand prefer selling corn, which dampens the price at ports with a fall of 10-20 CNY/tonne. Participants need to beware of the falling pressure brought by inventory clear before the auction in late May.
Sorghum:
Domestic sorghum prices are stable with a decline in some regions today, of which dried sorghum prices prevail at around 2,700-2,780 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. China is considering imposing anti-dumping duties of up to 73.6% and countervailing duties of up to 6.9% for barley imported from Australia, according to reports by foreign media. But China has not officially respond to this news.
(USD $1=CNY ￥7.09)
