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Daily Review on Grain Market in China--10/10/2020

2020-10-10 www.cofeed.com

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

 

Corn:

 

Corn prices stay stable with a further increase in some regions of China today. And the average price is 2,323 CNY/tonne nationwide, up 16 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,310-2,440 CNY/tonne with a rise of 16-20 CNY/tonne compared to yesterday. At Jinzhou port, Liaoning, the purchasing price of 2020 new corn is raised to 2,400 CNY/tonne, up by 20 CNY/tonne from yesterday. At Bayuquan port, Liaoning, new corn of 2020 with volume weight of 720 g/L (moisture within 15%, impurity with 1%, mildew with 2%) is priced at 2,400 CNY/tonne, an increase of 20 CNY/tonne from yesterday. Tiancheng Group in Siping, Jilin has started purchasing new corn since Sept 29, and today offer the price of Grade-III new corn at 2,200 CNY/tonne. The purchasing price of Grade-III new corn offered by Longfeng company in Suihua Qinggang, Heilongjiang remains flat at 2,120 CNY/tonne.

 

Due to reduced corn output in growing area and less corn volume oriented by policy, the overall supply in market gets tightened. And marketers are bulling the outlook, so they intend to stock up corn. As of now, corn sales in North China are relatively slow on the whole. And the arrival of corn at Shandong deep-processing enterprises is still not considerable, so they still tend to raise price. Hence, many firms still have intention to raise price. Besides, after National Day holidays, corn futures on Dalian Commodity Exchange are skyrocketing, attracting investors to take a large buying. These have together boosted corn market, and the price further rises by 10-40 CNY/tonne in some regions today. In the near term, corn market will maintain high levels amid bullish market sentiment. And buyers can close eyes on the marketing of new corn.

 

Sorghum:

 

Domestic sorghum prices are stable today. 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, 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 with the average price at 2,506 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 279,000 tonnes as of Oct 9. 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 with the average at 1,991 CNY/tonne. As of Oct 9, imported barley stocks totaled 643,000 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 ¥6.78)