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Daily Review on Grain Market in China--12/28/2020

2020-12-28 www.cofeed.com

Today (Dec 28), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices continue rising in China. And the average price is 2,581 CNY/tonne nationwide, up 22 CNY/tonne from last Friday. Deep-processing enterprises in Shandong offer at 2,526-2,700 CNY/tonne, an increase of 10-50 CNY/tonne from last Friday. At Jinzhou port, Liaoning, new corn (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is priced at 2,630-2,650 CNY/tonne, up 20 CNY/tonne from last Friday. At Bayuquan port, Liaoning, Grade-II new corn of 2020 (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is priced at 2,650 CNY/tonne, up 50-70 CNY/tonne from last Friday. At Guangdong port, Grade-II corn is traded at 2,700 CNY/tonne, an advance of 20 CNY/tonne from last Friday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn steadily at 2,400 CNY/tonne. The purchasing price of Grade-III corn by Longfeng company in Suihua Qinggang, Heilongjiang is 10 CNY/tonne higher at 2,460 CNY/tonne compared to last Friday.

 

There are only around 200 trucks waiting to get unloaded in Shandong earlier this morning due to hazy days in North China, and all enterprises raise corn price by 10-50 CNY/tonne compared to last Friday. Due to a reduction in production in main producing regions, corn market is heading for a foreseeable tight supply, offering support to market. And farmers in Northeastern are even more reluctant to sell their corn inventory after seeing a drop of corn price. With a lack of marketing volume, some traders and deep-processing firms raise price by 10-30 CNY/tonne. Besides, corn futures continue being pulled up on Dalian Commodity Exchange today and the price inversion at Southern and Northern area offers support, giving a boost to price at ports with a rise of 20-50 CNY/tonne. Hence, the overall market will maintain the high level based on bullish fundamentals. Market participants should pay attention to sales mentality and policy guidelines.

 

Sorghum:

 

New sorghum prices are mixed with the overall index rising in China today. New sorghum planted area and production suffer a reduction under the influence of typhoons this year and an expansion in other crops, so farmers show strong sentiment in propping up prices. Moreover, large-scaled well-known wineries gradually start their stocking up for the Chinese Lunar New Year. Growing downstream demand is thus support domestic sorghum prices to keep firm. But imported sorghum is in huge supply and of low prices, so some small distilleries are purchasing imported sorghum to save cost. This is weighing down domestic sorghum market.

 

Imported sorghum prices steady with the average price at 2,901 CNY/tonne in China today. Market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, the cost of importing sorghum is also strengthening due to the coronavirus pandemic. These are bullish to sorghum market. However, imported sorghum stocks are adequate at port now, with a total of 205,000 tonnes at Guangdong ports as of Dec 18. And an expected rise in sorghum arrivals will probably weigh down sorghum prices in China. Participants can focus on US-China relations.

 

Barley:

 

Imported sorghum prices steady with the average price at 2,901 CNY/tonne in China today. Market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, the cost of importing sorghum is also strengthening due to the coronavirus pandemic. These are bullish to sorghum market. However, imported sorghum stocks are adequate at port now, with a total of 205,000 tonnes at Guangdong ports as of Dec 18. And an expected rise in sorghum arrivals will probably weigh down sorghum prices in China. Participants can focus on US-China relations.

 

(USD $1=CNY ¥6.52)