Today (Dec 2), the market for grains in China is shown as follows:

Corn:

Corn prices continue growing in some regions of China today. And the average price is 2,537 CNY/tonne nationwide, up 9 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,534-2,650 CNY/tonne with partial rise of 10-20 CNY/tonne from yesterday. At Jinzhou port, Liaoning, new season corn (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is priced at 2,580 CNY/tonne, up 20 CNY/tonne from yesterday. 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 2,580 CNY/tonne, up 30 CNY/tonne from yesterday. At Guangdong port, Grade-II corn price is 2,610 CNY/tonne, an increase of 10 CNY/tonne from yesterday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn still at 2,480 CNY/tonne, flat from yesterday. The purchasing price of Grade-III corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,420 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. Traders and deep processing firms are snapping up corn. With corn price ramping up, some traders in Northeast area intend to build storage to hoard corn, tightening corn supply in market. And farmers are even more reluctant to sell their corn inventory. Due to lack of corn marketing, Northeastern deeply processing enterprises individually raise corn price by 20-30 CNY/tonne. Besides, an advance of price in North China, along with price inversion at South and North China lead corn price at ports to further increase by 10-30 CNY/tonne. In short, the overall corn market will maintain the high level underpinned by bullish fundamentals. Market participants should pay attention to 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. Moreover, distillery owners have to make purchases for daily requirements. In addition, grain depots are strict about crop moisture, 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 178,000 tonnes as of Nov 27. 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 495,000 tonnes at Guangdong ports as of Nov 27. 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)