Today (Oct 20), the market for grains in China is shown as follows:

Corn:

Corn prices stay stable with partial rise in China today. And the average price is 2,431 CNY/tonne nationwide, up 5 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,480-2,590 CNY/tonne with a rise of 10-40 CNY/tonne compared to yesterday. At Jinzhou port, Liaoning, the purchasing price of 2020 new corn remains at 2,490 CNY/tonne, flat 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 2,490 CNY/tonne, unchanged with yesterday. At Guangdong port, Grade-II old corn is priced at 2,650 CNY/tonne. Tiancheng Group in Siping, Jilin has started purchasing new corn since Sept 29, and offered the price of Grade-III new corn steadily at 2,360 CNY/tonne. The purchasing price of Grade-III new corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is raised to 2,200 CNY/tonne, unchanged from yesterday.

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. 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. Nevertheless, with weather clearing up and price increasing continually, the volume put into North China market will also increase. Additionally, corn futures on Dalian Commodity Exchange fall back today, containing market sentiment. In spot market, the rises of corn slow, and the price goes up 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 steady today. 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 are flat 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 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 disrupts barley trade between these two nations. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.69)