Today (Nov 5), the market for grains in China is shown as follows:

Corn:

Corn prices continue falling in some regions of China today. And the average price is 2,456 CNY/tonne nationwide, down 3 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,470-2,620 CNY/tonne with partial decrease of 10-20 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 2,475 CNY/tonne, down by 5 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 2,475 CNY/tonne, a drop of 5 CNY/tonne from yesterday. At Guangdong port, Grade-II old corn price is 2,550 CNY/tonne, flat from yesterday.

The profit margins are widening as wet corn prices stay at a high level in Northeast area, but the price is declining in recent days, so some farmers are more willing to sell corn stocks in hand. Cofeed’s data showed corn sales in major growing areas at 11% complete, 2% faster than 9% in the same period last year. Besides, there are 1615 trucks waiting to get unloaded in earlier morning in Shandong Province, an increase of 153 trucks from yesterday and 1190 trucks from the previous week. In this case, some enterprises reduce the price by 10-20 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, dampening market’s bullish sentiment. Corn prices at Northern ports ease off with a slight decline of 5 CNY/tonne. If there appears more sellers, corn price will continue falling in the cash market. But corn futures stop dipping and start bounding today. Moreover, 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. Even though corn price decreases, the downside potential is limited. And the overall corn market will maintain the high level, and participants can pay attention to new corn sales and sales mentality.

Sorghum:

New domestic sorghum prices are stable today. As new sorghum planted area and production suffer a reduction under the influence of typhoons this year and an expansion in other crops, its starting prices hit a historical high and farmers show strong sentiment in propping 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 with a partial 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 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 with a partial rise 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 ¥6.69)