Today (May 25), the market for grains in China is shown as follows:
Corn:
Domestic corn prices decline further today. The price among deep-processing enterprises in Shandong prevails at 2,110-2,190 CNY/tonne with a decrease of 10-20 CNY/tonne from last Friday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,000 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,020 CNY/tonne (moisture 15% and volume weight 720 g/L) respectively, both down by 10 CNY/tonne from last Friday. At Bayuquan port, the purchasing price of corn (volume weight 700-720 g/L) is 2,020-2,040 CNY/tonne flat from last Friday. At Shekou port, Guangdong, the second-class corn is not available. But several traders offer at 2,100 CNY/tonne tentatively.
The auction for temporary-reserved corn finally is coming. The first round of auction will be held on May 28, totaling 4 mln tonnes. And the reserve will remain flat from last year. Moreover, the cost is still lower than current price if in accordance with a premium of 100 CNY/tonne in various regions. At the moment, most of enterprises stay on the sideline and wait for the auction for corn. And some traders who stockpile corn in hand are more willing to clear out stocks. In recent two days, corn price further falls by 10-20 CNY/tonne in producing areas and at ports. But the consecutive drop in corn price together with the beginning of wheat harvest, cause the morning arrivals of corn in Shandong to decrease to around 400 trucks again. This may limit downward space of spot corn price in recent days, but corn market is projected to keep steady with a weak adjustment in phases. Buyers can keep eyes on the first round 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 decline today, of which US raw sorghum is quoted at 2,080 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 mixed today. Starting May 19, China has begun to 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. But barley is in weak demand and slow shipments at present. Overall, imported barley prices are predicted to keep steady with a strengthening trend overall.
(USD $1=CNY ￥7.12)
