Today (Jun 2), the market for grains in China is shown as follows:
Corn:
Domestic corn prices stay stable with slight adjustment today. The price among deep-processing enterprises in Shandong prevails at 2,180-2,210 CNY/tonne with several adjustments of 10 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat from yesterday 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. At Bayuquan port, the purchasing price of corn is 2,030-2,050 CNY/tonne (volume weight 700-720 g/L) unchanged from yesterday. At Shekou port, Guangdong, the second-class corn price is cut to 2,130-2,140 CNY/tonne, down by 10 CNY/tonne from yesterday.
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. Accordingly, market buyers are in wait-and-see mood. And domestic corn price mainly keeps steady today. 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, if corn price moves lower after high opens like last year, 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. 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 ￥7.12)
