Today (Jul 20), the market for grains in China is shown as follows:

Corn:

Corn prices mainly keep steady and further rise in some regions of China, and the average price is 2,196 CNY/tonne, up by 9 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,380-2,420 CNY/tonne, which partly increases by 10-46 CNY/tonne from yesterday and mostly up by 10-60 CNY/tonne from last Friday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat at 2,160 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,200 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), respectively. At Shekou port, Guangdong, the second-class corn price is raised to 2,340-2,350 CNY/tonne, up by 20 CNY/tonne from last Friday.

The premium of eighth auction for corn reserve continues hitting one-year high, and participants are more passionate in this auction. As high cost keeps offering support to market, some traders in Northeast area bull the market and raise the price by 10-60 CNY/tonne compared to last Friday. And several traders are optimistic about the after-market, but the remainder of new corn is not enough, so they suspend the sale. Moreover, corn arrival in Shandong only keeps around 200 trucks recently. Besides, Southern market is driven by a price hike in Northern area. Corn supply at Southern ports available for sale is getting tightened, and the price is up 10-30 CNY/tonne. 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 go higher today, of which dried sorghum prices prevail at around 2,700-2,800 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 stable with partial rise 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 455,000 tonnes as of July 17th. An expected rise in sorghum arrivals will probably weigh down US sorghum prices in China.

Barley:

Imported barley prices remain stable with a partial rise 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)