Today (Jul 27), the market for grains in China is shown as follows:

Corn:

Corn prices keep increasing in China, and the average price is 2,247 CNY/tonne nationwide, up by 22 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,440-2,530 CNY/tonne with a rise of 10-60 CNY/tonne from yesterday but 20-80 CNY/tonne compared with last Friday. At Jinzhou port, Liaoning, the purchasing price of corn increases by 30 CNY/tonne to 2,260 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,280 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), respectively. At Bayuquan port, the purchasing price of corn is 2,260 CNY/tonne (volume weight 700 g/L), up by 30 CNY/tonne from last Friday. And the Grade-I corn price is 2,280 CNY/tonne, up 30 CNY/tonne from last Friday. At Shekou port, Guangdong, the offer for Grade-II corn is not clear but is expected to be raised to 2,450 CNY/tonne, an advance of 30 CNY/tonne from last Friday.

The premium of the ninth auction for corn reserve hit a fresh record again. 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. Besides, market expects to lower corn imports amid tensions between U.S. and China. 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 20-50 CNY/tonne. Additionally, corn arrival in Shandong falls to below 100 trucks today. And some enterprises further raise the price by 10-60 CNY/tonne compared to last Friday. 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.

Sorghum:

Domestic sorghum prices are stable with some rises today, of which dried sorghum prices prevail at around 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 higher in China today, as market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, 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 ¥7.00)