Today (May 18), the market for grains in China is shown as follows:
Corn:
Domestic corn prices keep steady mainly and adjust slightly in several regions today. The price among deep-processing enterprises in Shandong prevails at 2,170-2,230 CNY/tonne with several declines of 8-10 CNY/tonne from last Friday. At Jinzhou port, Liaoning, the purchasing price of corn is flat from last Friday at 2,010 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,035-2,040 CNY/tonne (moisture 15% and volume weight 720 g/L), respectively. At Shekou port, Guangdong, the second-class corn is priced at 2,110-2,120 CNY/tonne, which is unchanged from last Friday.
For the moment, the remainder of corn has bottomed out, and some traders still bull the after-market and have a wait-and-see mood with the policy auction being not announced. Besides, the morning arrivals of corn in Shandong continue decreasing to around 400 trucks, pushing several enterprises to raise the price. Nevertheless, 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. It is said that China hands out more grain low-tariff import quotas to increase purchases. Additionally, imported corn and grain are arriving at Southern ports in succession, which may restrict the market trend. Therefore, corn market is likely to stay stable mainly and fluctuate slightly before policy becomes clear.
Sorghum:
Domestic sorghum prices are stable with a partial decline 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 mixed with the overall index rising 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 ￥7.1)
