Today (Aug 18), the market for grains in China is shown as follows:

Corn:

Corn prices in China mostly keep steady with slight adjustment in some regions. And the average price is 2,277 CNY/tonne nationwide, flat from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,420-2,476 CNY/tonne, which declines by 6-30 CNY/tonne in several regions from yesterday. At Jinzhou port, Liaoning, the old corn with volume weight 690-700 g/L is priced at 2,250 CNY/tonne (better quality) and with volume weight 720 g/L is priced at 2,270-2,280 CNY/tonne, both unchanged with yesterday. At Shekou port, Guangdong, the offer for Grade-II old corn remains flat at 2,400 CNY/tonne from yesterday. The price of bulk new corn is not available.

Traders in Northeast area are more willing to sell the stocks in hand in a bid to lock in profits. And the ex-warehouse of corn also has been accelerated. The morning arrival among deep-processing enterprises in Shandong increases to 578 trucks today, and many businesses cut the price by 10-30 CNY/tonne. Nevertheless, corn futures on Dalian Commodity Exchange keep climbing up, giving confidence to market. Besides, corn price in Northern corn area stays firmly, so large traders tend to prop up price. Hence, short-term corn market is supported from bottoms, and will likely fluctuate slightly at high levels. Buyers can keep eyes on the ex-warehouse of corn in Northern area.

Sorghum:

Domestic sorghum prices are stable 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 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 338,000 tonnes as of Aug 14. 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 are stable today. As of Aug 14th, imported barley stocks totaled 72,000 tonnes at Guangdong ports. There will be vessels arriving gradually in coming months, with some 250,000 tonnes expected to arrive this week. Downstream buyers have weak demand for barley now, which slows down shipments. However, 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. Overall, imported barley prices are predicted to keep steady with a strengthening trend.

(USD $1=CNY ¥6.93)