Today (May 14), the market for grains in China is shown as follows:
Corn:
Domestic corn prices keep steady mainly and decline slightly in several regions today. The price among deep-processing enterprises in Shandong prevails at 2,180-2,230 CNY/tonne with no change from yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,010 CNY/tonne (moisture 15% and volume weight 700 g/L) flat from yesterday and 2,035-2,040 CNY/tonne (moisture 15% and volume weight 720 g/L) down by 5 CNY/tonne from yesterday, respectively. At Shekou port, Guangdong, the second-class corn is priced at 2,110-2,120 CNY/tonne, which is unchanged from yesterday.
The forthcoming auction coupled with stocks clear before wheat harvest, lead traders to be more willing to sell corn for profits making, particularly around North China. Consequently, the morning arrivals of corn in Shandong still reach around 1,500 trucks though affected by rainy weather. In addition, the positivity of downstream enterprises in recovering poultry population is affected by recent losses in poultry breeding, and market expects a decline in demand for poultry in May and June, so feed enterprises are also not active in taking purchase. Additionally, imported corn and grain are arriving at Southern ports in succession, so traders who have inventory in hand prefer selling corn. Thus, corn price may still likely edge down in stability in recent days. Nevertheless, over 3.7 mln tonnes of disposable-reserved grain, which were scheduled to be placed on the market on May 15, has been postponed to mid-to-late May, but the specific date is undetermined. Besides, the auction of temporary-reserved grain also would be held in late this month, according to the previous meeting in subordinated storehouse. Moreover, recently the coronavirus emerged in Heilongjiang, Jilin and Liaoning successively, raising the uncertainty of this pandemic and affecting the pace of grain launch. Therefore, participants can keep eyes on the notice of auction.
Sorghum:
Domestic sorghum prices are stable 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)
