Today (Jul 31), the market for grains in China is shown as follows:

Corn:

Corn prices are mainly stable but continue increasing in some regions of China, and the average price is 2,291 CNY/tonne nationwide, up 11 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,460-2,570 CNY/tonne with partial rises of 20-60 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of corn increases by 40 CNY/tonne to 2,300 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,310-2,320 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), respectively. At Shekou port, Guangdong, the offer for Grade-II corn remains at 2,450 CNY/tonne, unchanged with yesterday.

The tenth round of auction for corn reserve was over. The premium in Inner Mongolia fell slightly but hit a record high again in other three provinces. With the bullish sentiment offering support to market, some Northern traders and deep-processing enterprises extend the rally and raise the price by 20-60 CNY/tonne. The overall supply in Shandong is still tight although it has increased a bit. And some businesses with insufficient stocks further raise the purchasing price. Besides, driven by a price hike in Northern area and tight supply of corn available for sale at Southern ports, short-term corn market may keep staying at highs. Participants are suggested to keep eyes on the policy orientation.

Sorghum:

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2,800-2,840 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, 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, imported sorghum stocks at Guangdong ports still total 360,000 tonnes as of July 24th. And 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 24th, imported barley stocks totaled 24,000 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 ¥6.98)