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Daily Review on Grain Market in China—6/24/2020

2020-06-24 www.cofeed.com

Today (Jun 24), 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 a slight adjustment 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 Shekou port, Guangdong, the second-class corn is priced at 2,240 CNY/tonne unchanged with yesterday.

 

The phased supply in market is still tight resulted from slow ex-warehouse and very few amounts of corn taken delivery by traders. As of now, the fifth round of auction for corn reserve still was closed at 100% and the premium is also high, offering support to market. Nevertheless, the premium in Jilin shrank slightly compared with the previous week. Besides, the deposit of corn reserve was raised and the payment deadline was put forward. In addition, with a public notice about auction issuing today, the rumor that auction would be halted in early July has collapsed itself. And the amount of corn for auction increases to 4.1 mln tonnes from 4 mln tonnes. Furthermore, disposable reserve regulated by policy has been carried out in Shandong, so downstream enterprises stay on the sideline. Corn market today keeps steady overall but will be weak in climbing up in the near term. Thus, the market is projected to stay at high levels on the whole.

 

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 total 334,000 tonnes as of June 19th. An expected rise in sorghum arrivals 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 19th, 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 ¥7.06)