Today (Jun 5), 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 small adjustment of 4-20 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 2,050 CNY/tonne (moisture 15% and volume weight 720 g/L), respectively. At Shekou port, Guangdong, the second-class corn price is 2,140 CNY/tonne unchanged with yesterday.
The second round of auction for corn reserve was held on Thursday, and market participants took active part in it. And the auction was closed at 100% and extended high premium in the three northeast provinces of China. Thus, the cost still offered support to market. Nevertheless, market reacted not strongly after the second round of auction. Moreover, 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. Accordingly, the tight supply in market will be eased. However, the operation rate among deep-processing enterprises down to recent-year low at the moment and the consumption of poultry feed is lower than expected, which will restrain market trend. Corn prices are mostly stable with slight fluctuation today, and may maintain high level in the near term.
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)
