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Daily Review on Grain Market in China—6/15/2020

2020-06-15 www.cofeed.com

Today (Jun 15), the market for grains in China is shown as follows:

 

Corn:

 

Domestic corn prices keep increasing today. The price among deep-processing enterprises in Shandong prevails at 2,200-2,230 CNY/tonne with partial rise of 10-40 CNY/tonne from last Friday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,080 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,095 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), up 25-30 CNY/tonne and 25 CNY/tonne from last Friday respectively. At Shekou port, Guangdong, the second-class corn price is still 2,200-2,210 CNY/tonne unchanged with last Friday.

 

The third round of auction for corn reserve was still closed at 100%. And the premium hit a new high, which was 30-70 CNY/tonne higher than the first 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, so some traders in Northeast area are reluctant to sell corn. After three rounds of auction, traders in Northeast area tend to raise price. Corn price at Liaoning port rises by 20-30 CNY/tonne today. And the cost factor has affected the price in South area. In light of corn reserve in the first and second rounds of auction, it is profitable for current price. And corn prices are up 10-30 CNY/tonne at Southern ports, which boosts market continually. Therefore, corn price will still be in a strong trend in recent days. Buyers can keep eyes on later ex-warehouse of temporary-reserved corn.

 

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 are stable with a partial rise in China today, of which US raw sorghum is quoted at 2,000 CNY/tonne. Corn prices keep increasing in China, which is bullish to sorghum market. However, imported sorghum stocks at Guangdong ports, including Machong, Nansha and Xingang, total 352,000 tonnes as of June 5th. 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 are stable with rises in some regions 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)