Today (Jul 1), the market for grains in China is shown as follows:

Corn:

Corn prices stay stable with declines in some regions of China. The price among deep-processing enterprises in Shandong prevails at 2,256-2,340 CNY/tonne with a slight change of 6-20 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat at 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. At Shekou port, Guangdong, the second-class corn is priced at 2,260 CNY/tonne and individually traded at 2,240-2,250 CNY/tonne unchanged with yesterday.

The success in auction for corn reserve is still offering support to market. Nevertheless, relevant departments have a talk with some enterprises in the case of the auction for 4 mln tonnes of corn reserve, and many businesses have suspended the provision of third-party funds. Besides, the deposit of corn reserve was raised and the payment deadline was put forward. If the news is true, participants may suffer financial stress, which may influence people’s bullish sentiment. In addition, with the forthcoming ex-warehouse of corn reserve auctioned previously after entering into July, corn reserve starts to flow into market gradually. In this case, the supply among deep-processing enterprises increases, with nearly 1000 trucks of corn arriving at Shandong compared to 100-200 trucks in the previous stage. Today, corn price still falls in some enterprises and will continue slight decline in the near term. Buyers can pay attention to the policy situation and the auction for corn reserve tomorrow, which may implicate the follow-up market trend.

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, and the cost of importing sorghum is also strengthening due to the coronavirus pandemic. However, imported sorghum stocks at Guangdong ports total 323,000 tonnes as of June 24th. An expected rise in sorghum arrivals 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. Chinese importers now are scarcely interested in Australian grains. And as of June 24th, imported barley stocks totaled 53,000 tonnes at Guangdong ports. The relatively low stocks and the cost of import together 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)