Today (Sep 23), the market for grains in China is shown as follows:

Corn:

Corn prices adjust slightly in some regions of China today. And the average price is 2,264 CNY/tonne nationwide, flat from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,250-2,430 CNY/tonne with partial declines of 4-30 CNY/tonne compared to yesterday. At Jinzhou port, Liaoning, the new corn with volume weight of 690-700 g/L (moisture within 14.5%, impurity within 1%, mildew within 2%) is priced at 2,260-2,270 CNY/tonne, up by 10 CNY/tonne from yesterday. At Bayuquan port, Liaoning, the price of old corn with volume weight of 690 g/L (moisture with 13.5%, impurity with 1%, mildew with 3%, unsound kernel with 10%) is 2,280 CNY/tonne, up by 10 CNY/tonne from yesterday. At Guangdong port, Grade-II old corn price remains at 2,450 CNY/tonne, which could be negotiated by 10-20 CNY/tonne.

A decline of corn output affected by typhoon in Heilongjiang and Jilin still bull the corn market, and West Liaoning is under great impact of the dryness. And the quality of corn in some regions will suffer. Accordingly, corn output in Jilin, Liaoning and Heilongjiang is doomed to go down. At the moment, traders with inventory in hand in Northeast area still bull the market, so corn price in Northeast area and at ports will keep strengthening in a short term. Nevertheless, corn futures on Dalian Commodity Exchange continue sharply fall today. Additionally, new corn has successively entered market in North China. And the morning arrival of corn in Shandong distinctly increases compared to last week. Corn prices in several enterprises dip by 10-18 CNY/tonne. Besides, new corn will intensively go marketing in North China in a week or so, expanding corn supply in a certain stage. At that time, local market will be contained, causing the market trend to be weaker than Northeast China. In late-September and October, downside risk of corn price in North China will increase, which may also affect the price in Northeast market and at ports. Buyers had better take notice about it. But the downward space will not be too much against the backdrop of bulling the market outlook.

Sorghum:

Domestic sorghum prices are stable today, of which dried sorghum prices prevail at around 2,900-3,000 CNY/tonne. The supply of sorghum is decreasing at present and grain merchants have seen bigger margins, so that farmers and traders have strong sentiment in propping up prices. In addition, domestic sorghum will see lower production as new crops in northeastern regions have been hit by typhoons. However, imported sorghum of lower prices will be arriving at domestic ports, and distilleries have limited demand, which will undermine domestic sorghum market. Overall, domestic sorghum prices are predicted to stay stale with a strengthening trend.

Imported sorghum prices are stable in China today and the average price is at 2,298 CNY/tonne. 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, and domestic holders now have small stocks of Australian sorghum amid tensions between China and Australia. However, imported sorghum stocks at Guangdong ports still total 291,000 tonnes as of Sept 18. 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 today and the average is at 1,981 CNY/tonne. As of Sept 18, imported barley stocks totaled 520,000 tonnes at Guangdong ports. There will be vessels arriving gradually in coming months, while downstream buyers have weak demand now, which will be negative to the market. In addition, barley shipments from Argentina, Canada and France have been flowing toward China as a conflict between China and Australia reshapes global trade pattern, which is also undermining domestic barley market. Merely, China has halted barley imports from Australia’s largest grain exporter whose shipments were found with pests on multiple occasions. This further disrupts barley trade between these two nations. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.80)