Today (Jul 24), 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 2,225 CNY/tonne, up by 12 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,400-2,450 CNY/tonne, which partly increases by 20-40 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of corn increases by 30 CNY/tonne to 2,230 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,250 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), respectively. At Bayuquan port, the purchasing price of corn is 2,230 CNY/tonne (volume weight 700 g/L), up by 10 CNY/tonne from yesterday. And the first-class corn price is 2,250 CNY/tonne with a rise of 10-20 CNY/tonne from yesterday. At Shekou port, Guangdong, the second-class corn is priced at 2,420 CNY/tonne, a rise of 20 CNY/tonne from yesterday.

The premium of the ninth auction for corn reserve hit a fresh record again, of which it runs up to 600 CNY/tonne in Bayannur Depot, Inner Mongolia. Participants are taking active part in this auction. As high cost keeps offering support to market, some traders in Northeast area bull the market. And some traders take this opportunity to raise price. Driven by a price hike in Northern area and tight supply of corn available for sale at Southern ports, the price at Southern ports continues increasing by 20-30 CNY/tonne. Besides, corn arrival in Shandong falls to below 200 trucks today. And some enterprises further raise the price by 20-30 CNY/tonne. Thus, short-term corn market may keep staying at highs. Buyers can keep eyes on the ex-warehouse of corn reserve from late July to August and take notice about the rumor of a hike of deposit and policy-oriented feed.

Sorghum:

Domestic sorghum prices are stable 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 in China today. The cost of importing sorghum is also strengthening due to the coronavirus pandemic. However, the U.S. had some sorghum shipments to China, and 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. Participants can focus on the development of US-China relations.

Barley:

Imported barley prices remain 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 July 17th, imported barley stocks totaled 22,000 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)