Today (Nov 3), the market for grains in China is shown as follows:

Corn:

 Corn prices in China stay stable with some declines today. And the average price is 2,467 CNY/tonne nationwide, down 10 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,522-2,640 CNY/tonne with a decrease of 10-24 CNY/tonne from yesterday. At Jinzhou port, Liaoning, the purchasing price of 2020 new corn with volume weight of 720 g/L (moisture within 15%, impurity with 1%, mildew with 2%) is 2,490-2,500 CNY/tonne, down by 5-10 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 2,490 CNY/tonne, a drop of 15 CNY/tonne from yesterday. At Guangdong port, Grade-II old corn price is cut to 2,560 CNY/tonne, down by 20 CNY/tonne from yesterday afternoon. The purchasing price of Grade-III new corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,280 CNY/tonne, unchanged from yesterday.

China’s corn market supply tightens due to a production reduction in main producing regions, coupled with reducing corn released under policies, so traders are bullish about the market outlook and have strong sentiment to hoard corn. Nevertheless, some farmers are willing to sell corn stocks in hand after seeing widening profit margins as wet corn prices jump to the high level in Northeast area. Besides, there are 1000 trucks waiting to get unloaded in earlier morning in Shandong Province, an increase of 516 trucks from last week and 739 trucks from a year earlier. It has been the first time that the number of trucks breaks 1000 since August 12^th this year. In this case, some enterprises reduce the price by 10-24 CNY/tonne due to a sharp rise in corn arrival. Additionally, Chinese government is projected to grant more import quota in the new crop year, said an industry source familiar with the matter. Therefore, corn imports are expected to increase, limiting market’s bullish sentiment. Corn futures still plunge today, and corn prices at Southern and Northern ports ease off with a decline of 10-20 CNY/tonne. If there appears more sellers, corn price will continue falling in the cash market. But the overall corn prices will stay strong at the high level in a long term, and participant can pay attention to new corn sales and sales mentality.

Sorghum:

New domestic sorghum prices are stable 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. Markets in main producing provinces of Shanxi, Inner Mongolia and Jilin have strong sentiment for higher prices. Moreover, distillery owners have to make purchases for daily requirements. In addition, grain depots are strict about crop moisture with the marketing of new sorghum, which also highlights its quality and prices. These combine to drive sorghum prices to continue rises.

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 196,000 tonnes as of Oct 30. And an expected rise in sorghum arrivals will probably weigh down US sorghum prices in China. Participants can focus on US-China relations.

Barley:

Imported barley prices steady today. China has halted barley imports from Australia’s largest grain exporter whose shipments were found with pests on multiple occasions, further disrupting barley trade between these two nations. Moreover, some domestic feed manufacturers also start using barley as corn prices remain high, which also bolsters barley prices. Merely, imported barley stocks totaled 548,000 tonnes at Guangdong ports as of Oct 30. While there will be vessels arriving gradually in coming months, the overall demand remains weak, 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. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.70)