Today (Dec 3), 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 2,543 CNY/tonne nationwide, up 6 CNY/tonne from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,534-2,660 CNY/tonne with most rise of 10-24 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, flat 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, unchanged from yesterday. At Guangdong port, Grade-II corn price remains flat at 2,610 CNY/tonne. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn still at 2,480 CNY/tonne with no change from yesterday. The purchasing price of Grade-III corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,440 CNY/tonne, up 20 CNY/tonne compared to both yesterday and this morning.

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 20-50 CNY/tonne. Besides, there are only around 179 trucks waiting to get unloaded earlier this morning in Shandong affected by rain and snow in North China these days, a decrease of 319 trucks compared to yesterday. Based on this, many businesses raise the price by 10-24 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 and policy guidelines.

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 decline 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 178,000 tonnes at Guangdong ports as of Nov 27. And an expected rise in sorghum arrivals will probably weigh down sorghum prices in China. Participants can focus on US-China relations.

Barley: Imported barley prices rise 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)