Today (Jun 1), the market for grains in China is shown as follows:
Corn:
Corn prices increase further in individual regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,170-2,210 CNY/tonne with a partial rise of 10-40 CNY/tonne compared with last Friday. At Jinzhou port, Liaoning, the purchasing price of corn settles at 2,020 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,040 CNY/tonne (moisture 15% and volume weight 720 g/L), respectively, and both up by 20 CNY/tonne from last Friday. At Bayuquan port, the purchasing price of corn is 2,030-2,050 CNY/tonne (volume weight 700-720 g/L) with a rise of 10 CNY/tonne from last Friday. At Shekou port, Guangdong, the second-class corn price is 2,140-2,150 CNY/tonne unchanged with last Friday.
The first round of auction for temporary-reserved corn totaling 4 mln tonnes was over, and the close rate reached 100% in different regions. In light of the auction result, the average premium generally topped 100 CNY/tonne, shoring up market confidence. And traders who have stocks in hand become reluctant to sell corn, so corn price in some regions further rises by 10 CNY/tonne today. Nevertheless, there are another two rounds of auction for 4 mln tonnes of corn this Thursday and next Thursday. It is said that the disposable reserved-corn in Northeast will also come on this week. However, under the impact of tight feedstuff, high cost, profit loss and weak downstream demand, the operation rate among deep-processing enterprises is limited and down to recent-year low at the moment. Therefore, enterprises can’t afford pricey corn, which may affect demand for corn in near stage. Buyers can pay attention to the auction this week. If the auction is still as hot as last week, corn price will stay at high levels. Otherwise, it may raise risk in a high-level adjustment in corn market.
Sorghum:
Domestic sorghum prices are stable with declines in some regions today, of which dried sorghum prices prevail at around 2,680-2,700 CNY/tonne. Imported sorghum is in huge volume and at relatively low prices. Meanwhile, it is not easy to stock up sorghum due to higher temperatures, and distilleries have also suspended purchases and production entering the hottest period of summer. These together weigh on domestic sorghum market. However, both farmers and traders have a strong sentiment for higher prices, as sorghum supplies are reducing and margins are growing. 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 with a partial rise 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)
