Today (Aug 6), the market for grains in China is shown as follows:

Corn:

Corn prices mainly keep steady with a little adjustment in China, and the average price is 2,317 CNY/tonne nationwide, up by 2 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,480-2,600 CNY/tonne with a rise of 14-20 CNY/tonne compared with yesterday. At Jinzhou port, Liaoning, the purchasing price of corn remains flat at 2,300-2,310 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.

As the price spread between corn and wheat has narrowed gradually with corn price climbing up, some feed plants has adjusted the formula and replaced corn with wheat (with a proportion of 10%-30%). Market’s bullish sentiment has slackened under this situation. It is known that related department has accelerated the ex-warehouse of corn in Northeast China, and some local traders have intention to cut the price for taking profit. Today, the price declines by 10-20 CNY/tonne. Therefore, short-term corn market will probably pare gains from high levels.

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 unchanged 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 433,000 tonnes as of July 31st. 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 flat 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 31st, imported barley stocks totaled 56,000 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 ¥6.94)