Today (Jun 11), the market for grains in China is shown as follows:
Corn:
Domestic corn prices stay stable and edge up in several regions today. The price among deep-processing enterprises in Shandong prevails at 2,170-2,210 CNY/tonne with individual rise of 10-16 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,040-2,045 CNY/tonne (moisture 15% and volume weight 700 g/L) and 2,055-2,065 CNY/tonne (moisture 15% and volume weight 720-730 g/L) respectively, flat from yesterday. At Shekou port, Guangdong, the second-class corn price is raised to 2,160 CNY/tonne and up 10 CNY/tonne at low levels compared with yesterday.
The third round of auction for corn reserve was still closed at 100%. And the premium hit a new high, with an increase of 54.24 CNY/tonne in Inner Mongolia, 24.39 CNY/tonne in Liaoning and 46.34 CNY/tonne in Jilin from the previous round. In this case, the cost of corn is further pulled up, shoring up market confidence. And traders who have stocks in hand bull the after-market. In addition, corn shipment is delayed affected by continuous rainstorm in South area, so the corn supply which is available for sale at ports gets tightened, raising traders’ intention to prop up price. Corn prices at ports continue increasing by 10 CNY/tonne today. Being supported by high cost, corn price will still stay at high levels in the near term. Buyers can keep eyes on later ex-warehouse of temporary-reserved corn.
Sorghum:
Domestic sorghum prices are stable with a partial decline 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 are unchanged in China today, of which US raw sorghum is quoted at 2,000 CNY/tonne. As of June 5th, imported sorghum stocks at Guangdong ports, including Machong, Nansha and Xingang, total 352,000 tonnes. Meanwhile, some 120,000 tonnes of sorghum cargoes are expected to arrive at domestic ports next week. The growing supply will probably weigh down US sorghum prices in China.
Barley:
Imported barley prices go up 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. This will reduce barley imports from Australia, which is bullish to barley prices. And as of June 5th, imported barley stocks at Guangdong ports, including Machong, Nansha and Xingang, total 98,000 tonnes. And there is no cargo expected to come next week. The relatively low stocks help support barley prices. Merely, 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)
