Today (Sep 27), 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, up 1 CNY/tonne from Friday. The price among deep-processing enterprises in Shandong prevails at 2,280-2,410 CNY/tonne with partial rises of 10-20 CNY/tonne compared to yesterday and 10-30 CNY/tonne compared with Friday. 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 2,270 CNY/tonne, unchanged from Friday. At Bayuquan port, old corn with volume weight of 710-720 g/L (moisture with 13.5%, impurity with 1%, mildew with 3%, unsound kernel with 10%) is priced at 2,280 CNY/tonne. And the price of 2020 new corn with volume weight of 720-730 g/L (moisture within 15%, mildew with 2%) is 2,320-2,330 CNY/tonne. At Guangdong port, Grade-II old corn is offered at 2,450 CNY/tonne, which could be traded at 2,430 CNY/tonne with no change from Friday.

The arrival of corn at North China is not considerable in recent two days, so some enterprises raise the purchasing price again amid short supply. Buyers take a wait-and-see attitude as corn price at ports jumps to high levels on fears about output decline in Northeast area, and corn prices in growing area also steadily decrease. And corn prices steadily drop by 10-20 CNY/tonne in growing area and at ports. Nevertheless, the overall supply has declined in the market this year. And 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 flat in China today and the average price is at 2,367 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 ¥6.81)