Today (Jun 19), the market for grains in China is shown as follows:

Corn:

Domestic corn prices go up today. The price among deep-processing enterprises in Shandong prevails at 2,220-2,260 CNY/tonne with an increase of 10-30 CNY/tonne in some regions compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,105 CNY/tonne (moisture 14.5% and volume weight 700 g/L), up 10 CNY/tonne from yesterday. At Shekou port, Guangdong, the second-class corn price is raised to 2,250 CNY/tonne, an increase of 20 CNY/tonne from yesterday.

The fourth round of auction for corn reserve was as hot as the previous auctions, which was closed at 100% in three provinces. And the premium continued setting to a record high, with a month-on-month growth of 77.6 CNY/tonne in Liaoning, 40.56 CNY/tonne in Inner Mongolia, 67.83 CNY/tonne in Jilin and 83.02 CNY/tonne in Heilongjiang. In this case, traders are bulling the market, and some of them in Northeast raise the price by 60 CNY/tonne compared with yesterday. Due to a support of cost factor, market confidence is shored up. And corn price at ports basically further grows by 10-70 CNY/tonne. Being affected by the bullish sentiment boosted by the auction, short-term corn price will still be in a strong trend at high levels.

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)