Today (Nov 24), the market for grains in China is shown as follows:

Corn:

Corn prices keep rising in some regions of China today. And the average price is 2,488 CNY/tonne nationwide, up 13 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,534-2,640 CNY/tonne with an additional rise of 10-20 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 2,530 -2,540 CNY/tonne, up 10 CNY/tonne at the high level compared to 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 2,530 CNY/tonne, up 10 CNY/tonne from yesterday. At Guangdong port, Grade-II old corn is priced at 2,600 CNY/tonne, an increase of 10 CNY/tonne from yesterday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn at 2,450 CNY/tonne, rising by 30 CNY/tonne from earlier morning and 70 CNY/tonne from yesterday. The purchasing price of Grade-III corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,318 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 some farmers are more hesitant to sell corn. And traders are bullish about the market outlook and intend to build storage to hoard corn. On the other side, even though road passage gets back to normal gradually, corn arrival is still insufficient due to massive snow and rain in Northeast area. Moreover, affected by unfavorable weather in North China and farmers’ reluctance, there are only around 400 trucks waiting to get unloaded in earlier morning in Shandong Province today. In consequence, some deep-processing enterprises further raise the price by 10-40 CNY/tonne. If corn arrival keeps growing, the price will likely go up additionally. In short, the overall corn market will maintain the high level. Market participants should pay attention to the impact of weather condition on corn marketing.

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 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 ¥6.58)