Today (Jun 16), the market for grains in China is shown as follows:

Corn:

Corn prices keep increasing in some regions of China today. The price among deep-processing enterprises in Shandong prevails at 2,200-2,230 CNY/tonne with a rise of 10 CNY/tonne in several regions compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,085-2,090 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,110-2,115 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), up 5-10 CNY/tonne and 15 CNY/tonne from yesterday respectively. At Bayuquan port, the purchasing price of corn is 2,090 CNY/tonne (volume weight 700 g/L), which is up 10 CNY/tonnes from lows. And the first-class corn is priced at 2,120 CNY/tonne up by 10-20 CNY/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price is 2,220 CNY/tonne, a rise of 10-20 CNY/tonne from yesterday.

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 further increases by 10-20 CNY/tonne today. And the cost factor has affected the price in South area. In light of current price, it is profitable for corn reserve in the first and second rounds of auction. And corn prices continue rising by 10-20 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 remain stable today, of which dried sorghum prices prevail at around 2,680-2,700 CNY/tonne. Chinese importers have bought relatively huge amount of sorghum, which will be at relatively low prices. Moreover, it become more difficult to stock up sorghum as the weather gets warmer and warmer, and distilleries have also suspended purchases and production entering the hottest period of summer. These together weigh down domestic sorghum market to some extent. But domestic sorghum supplies are reducing and margins are growing, so that farmers and traders both tend to prop up prices. Overall, domestic sorghum prices are predicted to maintain its stable trend.

Imported sorghum prices are stable in China today, of which US raw sorghum is quoted at 2,000 CNY/tonne. The uptrend in corn prices 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. 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 5^th, imported barley stocks at Guangdong ports, including Machong, Nansha and Xingang, total 98,000 tonnes. 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 ¥7.08)