Today (May 20), the market for grains in China is shown as follows:
Corn:
Domestic corn prices decline slightly in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,160-2,240 CNY/tonne with a decrease of 10-20 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is flat from yesterday 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 2,100 CNY/tonne and down 10 CNY/tonne from yesterday.
There is a rumor that the first round of auction for temporary-reserved corn will be held on May 28. According to latest news, the auction cycle is approaching. And some traders in North China are more willing to sell corn for making profits. Besides, the morning arrivals of corn in Shandong increase to over 1,000 trucks. In addition, 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. Moreover, imported corn and grain are arriving at Southern ports in succession, which may restrict the market trend. Today, corn price among some Shandong enterprises and several ports falls by 10 CNY/tonne. Nevertheless, the remainder of corn has bottomed out at the moment, and it fails to fulfill the auction through many times of rumors, raising some traders’ reluctance. Consequently, the circulation of corn in market is restricted. Therefore, the price declines of corn are limited and the overall market is predicted to stay stable with slight fluctuations before policy becomes clear.
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. However, in the week ending May 14th, US sorghum exports to China mainland totaled 202,113 tonnes, with a total of 1,145,450 tonnes since March, according to USDA weekly report on exports for inspected. This weighs down sorghum market prospect.
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. Moreover, starting May 19, China will impose 80.5% of anti-dumping and anti-subsidy tariffs on barley originating in Australia for five years, according to announcements by China’s Ministry of Commerce on May 18th. With bullish factors, imported barley prices are predicted to keep steady with a strengthening trend overall.
(USD $1=CNY ￥7.1)
