Today (May 26), the market for grains in China is shown as follows:
Corn:
Domestic corn prices are mainly stable with slight adjustment today. The price among deep-processing enterprises in Shandong prevails at 2,120-2,200 CNY/tonne with several rises of 10-20 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat from yesterday at 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. At Shekou port, Guangdong, the second-class corn is priced at 2,100 CNY/tonne unchanged with yesterday.
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. But the consecutive drop in corn price, together with the beginning of wheat harvest in some regions, cause corn arrivals in North China to decrease to less than 200 trucks again. Furthermore, some traders still have confidence in after-market, stirring their selling reluctance after corn price declines continually. This has limited the downward space in corn market. Buyers can keep eyes on the development of first round of auction, which may lead a new direction for next step.
Sorghum:
Domestic sorghum prices are stable with declines in some regions today, of which dried sorghum prices prevail at around 2,700-2,720 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 steady 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 stable 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 ￥7.13)
