Today (Sep 29), the market for grains in China is shown as follows:

Corn:

Corn prices move at high levels in some regions of China today. And the average price is 2,271 CNY/tonne nationwide, up 3 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,310-2,410 CNY/tonne with a slight adjustment 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 2,280-2,290 CNY/tonne, flat from yesterday. And old corn with volume weight of 720 g/L is priced at 2,300 CNY/tonne. Additionally, the purchasing price of new corn of 2020 is respectively 2,350 CNY/tonne (volume weight with over 720 g/L, moisture within 15%, impurity with 1%, mildew within 2%) and 2,330 CNY/tonne (volume weight with 700 g/L, moisture within 15%, impurity with 1%, mildew within 2%), unchanged from yesterday. At Guangdong port, Grade-II old corn is offered at 2,480 CNY/tonne, up by 30 CNY/tonne compared to yesterday.

Due to reduced corn output in growing area and less policy-oriented corn, the overall supply in market gets tightened. And marketers are bulling the outlook. The listing price of Northeastern deep-processing enterprises is sharply pulled up compared to the same period last year. Corn futures on Dalian Commodity Exchange today extend the rally today. Besides, the arrival of corn at North China has increased but not considerable as a whole, so some enterprises continue raising the purchasing price amid short supply. Nevertheless, buyers take a wait-and-see attitude as corn price at ports jumps to high levels. After National Day holidays, corn will go marketing in huge quantity, thereby the supply will increase. At that time, the trend of corn market will be limited. Accordingly, corn market is likely to fluctuate slightly in the near term.

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 213,000 tonnes as of Sept 25. 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 25, imported barley stocks totaled 620,000 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 ¥6.82)