Today (Jul 8), the market for grains in China is shown as follows:

Corn:

Corn prices stay stable with a rise in several regions of China. The price among deep-processing enterprises in Shandong prevails at 2,262-2,330 CNY/tonne and individually increases by 10-20 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat at 2,130 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 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 2,270-2,280 CNY/tonne, unchanged with yesterday.

The sixth round of auction for corn reserve was still closed at 100%, which was beyond expectation. The overall premium still stays at high levels. As high cost continues offering support to market and the supply of goods available for sale is tightening at northern and southern ports, traders who have inventory in hand offer the price also high. In addition, with the forthcoming ex-warehouse of corn reserve auctioned previously after entering into July, traders successively take delivery of goods due to considerable profit. In this case, corn reserve flowing into market has increased, and the supply among deep-processing enterprises steadily improves. Besides, downstream businesses are in a wait-and-see mood as current price has risen to high levels. Thus, short-term corn price may keep staying at highs. Buyers can keep eyes on the auction and the progress in ex-warehouse of corn.

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 flat 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 487,000 tonnes as of July 3rd. 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. Chinese importers now are scarcely interested in Australian grains. And as of July 3rd, imported barley stocks totaled 41,000 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 ¥7.02)