Today (Jun 17), the market for grains in China is shown as follows:

Corn:

Domestic corn prices are stable with a slight rise today. The price among deep-processing enterprises in Shandong prevails at 2,200-2,230 CNY/tonne with an increase of 20 CNY/tonne in several regions compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat from yesterday at 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), respectively. At Bayuquan port, the purchasing price of corn is 2,090 CNY/tonne (volume weight 700 g/L), which is unchanged with yesterday. And the first-class corn is also steadily priced at 2,120 CNY/tonne. At Shekou port, Guangdong, the second-class corn price is 2,220 CNY/tonne, flat from yesterday.

As the premium in the third round of auction for corn reserve set a record high, traders with stocks in hand were bullish. And traders in Northeast area and at ports followed the rise. Corn price at some ports further increases by 10-20 CNY/tonne today. And current corn price has risen to high levels. In addition, the auction for 4 mln tonnes of corn reserve is announced to be held on June 24. Meanwhile, market rumor has it that policy-oriented corn will be launched more in a bid to relieve the pressure between supply and demand, ensure steady supply, so some enterprises are in wait-and-see mood. Therefore, corn price in crop regions mainly stays stable today and 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 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 ¥7.09)