Today (Jun 4), the market for grains in China is shown as follows:
Corn:
Corn prices stay stable with slight adjustment in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,170-2,210 CNY/tonne with individual declines of 10 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,020 CNY/tonne (moisture 15% and volume weight 700 g/L) flat from yesterday and 2,050 CNY/tonne (moisture 15% and volume weight 720 g/L) up by 10 CNY/tonne from yesterday, respectively. At Bayuquan port, the purchasing price of corn is 2,040-2,060 CNY/tonne (volume weight 700 g/L) and up 10 CNY/tonne from yesterday. And the first-class corn is priced at 2,070, an increase of 10 CNY/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price is 2,130-2,140 CNY/tonne unchanged with yesterday.
The second round of auction for corn reserve has been held today. In light of the turnover in Inner Mongolia and Liaoning, it is quite popular. Among that, the conversion rate is 100% in Liaoning and 99.54% in Inner Mongolia, respectively. And the premium stays at high levels at all. Nevertheless, the disposable corn reserve in Northeast is issued, and there is another round of auction for corn totaling 4 mln tonnes next Thursday. As policy grain will be launched in huge quantity, corn flows into the market in many ways. 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. Compared with the first round of auction, participants become calmer. And corn prices mostly keep steady today. Participants can go on taking note in the auction in Jilin and Heilongjiang this week.
Sorghum:
Domestic sorghum prices are stable 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 ￥7.10)
