Today (Oct 19), the market for grains in China is shown as follows:

Corn:

Corn prices continue increasing in China today. And the average price is 2,426 CNY/tonne nationwide, up 39 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,590-2,880 CNY/tonne with a rise of 40-140 CNY/tonne compared to last Friday and 20-60 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of 2020 new corn remains at 2,490 CNY/tonne, flat from yesterday. Tiancheng Group in Siping, Jilin has started purchasing new corn since Sept 29, and offered the price of Grade-III new corn at 2,360 CNY/tonne, an increase of 120 CNY/tonne from last Friday. The purchasing price of Grade-III new corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is raised to 2,200 CNY/tonne, unchanged with last Friday.

Due to reduced corn output in growing area and less corn volume oriented by policy, corn supply in market gets tightened. And marketers are bulling the outlook, so they intend to stock up corn. For the moment, Northeastern corn has not largely gone marketing yet, and there is corn from North China flowing into Northeast market. As of now, corn sales in North China are relatively slow on the whole. In light of demand side, corn consumption among deep-processing enterprises in Northeast area is steadily increasing, thereby seeing a steady growth in feed production in recent months and particularly larger in September. Besides, some enterprises have intention to set up warehouses amid consecutive increases. Furthermore, corn futures on Dalian Commodity Exchange extend the opening gains and record new high. These have together boosted corn market, and the price further rises by 20-140 CNY/tonne in some regions today. In the near term, corn market is projected to maintain high levels amid bullish market sentiment. And buyers can close eyes on the marketing of new corn.

Sorghum:

Domestic sorghum production reduces this year due to smaller planting area and typhoons, so that its starting prices stay at a historical high and farmers tend to hoard crops and prop up prices. But distillery owners are reluctant to accept the prices and show weaker enthusiasm in purchasing. Moreover, new sorghum has not been harvested at full swing in northeastern China now. Overall, domestic sorghum prices are expected to slightly decline with the marketing of new sorghum.

Imported sorghum prices rise in China today. Market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, new U.S. sorghum crops are still under harvests, and the cost of importing sorghum is also strengthening due to the coronavirus pandemic. In addition, 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 with a partial rise today and the average price is at 2,002 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 disrupt barley trade between these two nations. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.70)