Today (May 27), the market for grains in China is shown as follows:
Corn:
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.
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. At the moment, most of enterprises stay on the sideline and wait for the auction for corn. In addition, the inventory among deep-processing enterprises stays at a low level, and the channel inventory in the market decreases. After a brief drop in corn price, traders who have stocks in hand are reluctant to sell corn. Furthermore, corn arrivals in North China continue falling to less than 200 trucks. And corn price grows by 10 CNY/tonne in individual regions of China today. Buyers can keep eyes on the development of first round of auction tomorrow, which may lead a new direction for next step.
Sorghum:
Domestic sorghum prices are stable 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 21st, US sorghum exports to China mainland totaled 141,783 tonnes, with a total of 1,287,233 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 ￥7.11)
