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Daily Review on Grain Market in China--11/18/2020

2020-11-18 www.cofeed.com

Today (Nov 18), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in China keep rising in some regions today. And the average price is 2,458 CNY/tonne nationwide, up 8 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,480-2,660 CNY/tonne with an increase of 10-46 CNY/tonne from yesterday. At Jinzhou port, Liaoning, new season corn with volume weight of 720 g/L (moisture within 15%, impurity with 1%, mildew with 2%) is priced at 2,515 CNY/tonne, flat from yesterday. At Bayuquan port, Liaoning, Grade-II new corn of 2020 with volume weight of 720 g/L (moisture within 15%, impurity with 1%, mildew with 2%) is priced at 2,510 CNY/tonne, unchanged from yesterday. At Guangdong port, Grade-II old corn price is offered at 2,580-2,600 CNY/tonne. And some traders offer the price still at 2,570 CNY/tonne.

 

Farmers are more hesitant to make sales of corn due to a consecutive drop in price and rainy weather in North China. There are less than 100 trucks waiting to get unloaded in earlier morning in Shandong Province, down 249 trucks compared to yesterday. With less corn going marketing, some deep-processing enterprises raise the price by 10-40 CNY/tonne. If corn arrival keeps decreasing, the price will likely increase again. Besides, 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 storage to hoard corn. The floor price of corn rotation in Northeast area is relatively high, which also offers bottom support. Corn futures extend the rally today, boosting corn prices at Southern ports by 10 CNY/tonne. The overall corn market will maintain the high level. It forecasts small to moderate snow or sleet, locally heavy snow or blizzard in northern North China, central-north Northeast region. This may impact purchase and sale of corn, so participants should pay attention to the weather condition.

 

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. 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 75,000 tonnes as of Nov 13. 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 568,000 tonnes at Guangdong ports as of Nov 13. 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 ¥6.56)