Today (Jul 16), the market for grains in China is shown as follows:

Corn:

Corn prices mainly keep steady and further rise in several regions of China, and the average price is 2,182 CNY/tonne, up by 2 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,300-2,370 CNY/tonne with a rise of 10-14 CNY/tonne in some regions compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat at 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), respectively. At Bayuquan port, the purchasing price of corn (volume weight 700 g/L) is 2,170 CNY/tonne, an increase of 20 CNY/tonne from yesterday. And the price of first-class corn is up 15 CNY/tonne to 2,200 CNY/tonne. At Shekou port, Guangdong, the second-class corn price is raised to 2,310 CNY/tonne, up by 10 CNY/tonne from yesterday.

The eighth auction for corn reserve is under way. And the premium continues hitting a record high and is far beyond the previous round, of which it sets 87.1 CNY/tonne higher at 2031.6 CNY/tonne in Inner Mongolia, 69.9 CNY/tonne higher at 2058.6 CNY/tonne in Liaoning and 31.8 CNY/tonne higher at 1988.4 CNY/tonne in Jilin, respectively. Participants are passionate in this auction. As high cost keeps offering support to market, some traders in Northeast area raise the price by 10-20 CNY/tonne. Moreover, corn arrival in Shandong keeps falling in recent days, which is still less than 200 trucks today. And several businesses further raise the price by 10-20 CNY/tonne. Besides, corn supply at Southern ports available for sale is getting tightened, and the price is up 10 CNY/tonne. And some traders are reluctant to sell corn and don’t offer the price as they are confident in after-market. Thus, short-term corn market 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. 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 494,000 tonnes as of July 10th. 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 10th, imported barley stocks totaled 30,000 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 ¥6.99)