Today (Jun 22), the market for grains in China is shown as follows:

Corn:

Domestic corn prices further rise today. The price among deep-processing enterprises in Shandong prevails at 2,220-2,300 CNY/tonne with an increase of 10-50 CNY/tonne compared with last Friday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,125 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,145-2,150 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L) respectively, which is flat from yesterday but up 20 CNY/tonne from last Friday. At Shekou port, Guangdong, the second-class corn price remains flat at 2,250 CNY/tonne from yesterday.

After the fourth round of auction for corn reserve, high premium pushes up the cost continually. In this case, traders with stocks in hand are bulling the market and waiting for higher price. Besides, though there are nearly 14 mln tonnes of corn reserves being traded in four rounds of auctions, the phased supply in market is still tight. It is resulted from slow ex-warehouse and very few amounts of corn taken delivery by traders. The overall arrival of corn in Shandong is not quite a little, so some enterprises have kept raising purchasing price to attract supply since the weekend on declining inventory, an increase of 10-50 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 with declines in some regions 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 with declines in some regions 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 mixed with the overall index rising 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)