Today (Aug 10), the market for grains in China is shown as follows:

Corn:

Corn prices in China mostly continue falling in China, and the average price is 2,280 CNY/tonne nationwide, down by 37 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,440-2,500 CNY/tonne with a decline of 10-70 CNY/tonne from yesterday and 10-104 CNY/tonne from last Friday. At Jinzhou port, Liaoning, the purchasing price of old corn decreases by 90 CNY/tonne to 2,200-2,210 CNY/tonne (moisture 14.5% and volume weight 700 g/L) and 2,220-2,230 CNY/tonne (moisture 14.5% and volume weight 720-730 g/L), respectively. At Bayuquan port, corn price falls by 70-80 CNY/tonne to 2,230 CNY/tonne (volume weight 700 g/L) and 2,250-2,260 CNY/tonne (volume weight 720 g/L). At Shekou port, Guangdong, the offer for Grade-II corn is cut to 2,380 CNY/tonne, down by 70 CNY/tonne from last Friday.

Market’s bullish sentiment has slackened, so some traders in Northeast area have intention to sell the goods driven by considerable profit. As the ex-warehouse of corn has been accelerated, more and more corn flows into market beyond Northeast. In this case, corn arrival in Shandong soared to 1481 trucks today versus only 332 trucks in the same period last week. With an increase of corn arrival, the price among businesses is depressed, which down by 10-70 CNY/tonne. As a result, being affected by the price decline in North area, corn price at Southern ports also turns to falling by 30-70 CNY/tonne today.

Sorghum:

Domestic sorghum prices climb higher today, of which dried sorghum prices prevail at around 2,840-2,900 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 a partial rise 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 432,000 tonnes as of Aug 7. 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 steady with a rise in some regions 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 Aug 7th, imported barley stocks totaled 63,000 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 ¥6.96)