Today (Jun 23), the market for grains in China is shown as follows:

Corn:

Domestic corn prices mainly keep steady with slight adjustment today. The price among deep-processing enterprises in Shandong prevails at 2,220-2,300 CNY/tonne with an increase of 6-20 CNY/tonne in several regions compared with yesterday. 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. At Bayuquan port, the purchasing price of corn is 2,130 CNY/tonne (volume weight 700 g/L) unchanged with yesterday. And the first-class corn is steadily priced at 2,150-2,160 CNY/tonne. At Shekou port, Guangdong, the second-class corn is priced at 2,240 CNY/tonne, down by 10 CNY/tonne from yesterday.

After the fourth round of auction for corn reserve, high premium pushes up the cost continually. 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. Nevertheless, the deposit of corn reserve would be adjusted to 220 CNY/tonne with a payment time limit of 20 days since June 24^th, according to the decision by relevant state departments. By contrast, the deposit in the previous four rounds of auction is 110 CNY/tonne with a payment time limit of 30 days. Thus, the deposit has been raised and the payment deadline has been put forward. In addition, rumor has it that corn reserve would only be in specified use oriented by policy after July. Accordingly, downstream enterprises stay on the sideline, and corn price are steady tentatively. Buyers can pay attention to the auction tomorrow.

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 steady 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 19^th, some 63,000 tonnes of imported barley has arrived at Guangdong ports. 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 ¥7.07)