Today (Jul 13), the market for grains in China is shown as follows:

Corn:

Corn prices extend the rally in some regions of China, and the average price is 2,176 CNY/tonne, up by 8 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,272-2,360 CNY/tonne with a rise of 10-20 CNY/tonne in some regions compared with last Friday. At Jinzhou port, Liaoning, the purchasing price of corn is 2,140-2,150 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,160-2,170 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), flat from last Friday. At Bayuquan port, corn is steadily priced at 2,150 CNY/tonne (volume weight 700 g/L), and the first-class corn price is 2,185 CNY/tonne, up by 5 CNY/tonne. At Shekou port, Guangdong, the second-class corn price is raised to 2,300 CNY/tonne, an increase of 20 CNY/tonne from last Friday.

The seventh round of auction for corn reserve has come to an end and is still closed at 100%. And the overall premium continues setting a fresh record. As high cost keeps offering support to market, traders are more confident about the after-market, and some of them with inventory in hand in Northern area even raise the price. It is known that trader who has participated the auction does not accept current price and has a plan to stockpile corn. Corn arrival in Shandong keeps falling and is less than 150 trucks today due to recent continuous rainy weather. And some businesses raise the price by 10-20 CNY/tonne compared to last Friday. Besides, corn supply at Southern ports available for sale is getting tightened, so traders with inventory in hand have intention to raise the price. Corn price today grows by 20 CNY/tonne today. Thus, under the support of phased tight supply and high cost, recent 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 with partial rise today, of which dried sorghum prices prevail at around 2,680-2,700 CNY/tonne. Domestic sorghum supplies are reducing and margins are growing, so that farmers and traders both tend to prop up prices. However, 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. 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 ¥7.00)