Today (Nov 12), the market for grains in China is shown as follows:

Corn:

Corn prices continue falling in some regions of China and edge up at Southern Northern ports today. And the average price is 2,437 CNY/tonne nationwide, flat from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,460-2,580 CNY/tonne with a 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 2,485 CNY/tonne, up 15 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 2,475-2,480 CNY/tonne, up 5-10 CNY/tonne at the high level. At Guangdong port, Grade-II old corn price remains flat at 2,540 CNY/tonne. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn at 2,360 CNY/tonne, flat from yesterday. The purchasing price of Grade-III new corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,280 CNY/tonne, unchanged from yesterday.

The profit margins are widening as wet corn prices stay at a high level in Northeast area, so some farmers are more willing to sell corn stocks in hand. Besides, on Nov 12, there are still around 1200 trucks waiting to get unloaded in earlier morning in Shandong Province. In this case, some deep-processing enterprises further reduce the price by 10-20 CNY/tonne. If corn arrival maintains the high level, short-term corn market will still be under pressure from going down. 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 start to build storehouses to hoard corn. The floor price of corn rotation in Northeast area is relatively high, which also offers bottom support. Corn futures continue growing today, and corn prices at Southern and Northern ports further rise by 5-20 CNY/tonne. 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. But traders and grain depots are cautious due to high prices, so that sorghum shipments are at a slow pace, which is weighing down the market.

Imported sorghum prices steady 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 129,000 tonnes as of Nov 6. 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 520,000 tonnes at Guangdong ports as of Nov 6. 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 ¥6.62)