Today (Dec 7), the market for grains in China is shown as follows:

Corn:

Corn prices in China keep steady with a rise today. And the average price is 2,556 CNY/tonne nationwide, up 13 CNY/tonne from last Friday. The price among deep-processing enterprises in Shandong prevails at 2,534-2,650 CNY/tonne with a slight fluctuation of 4-20 CNY/tonne from yesterday and 10-20 CNY/tonne from last Friday. 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 2,590 CNY/tonne, up 10 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 2,590 CNY/tonne, up 10 CNY/tonne from last Friday. At Guangdong port, Grade-II corn price is raised by 10 CNY/tonne to 2,630 CNY/tonne compared with last Friday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn still at 2,480 CNY/tonne with no change from last Friday. The purchasing price of Grade-III corn offered by Longfeng company in Suihua Qinggang, Heilongjiang is 2,450 CNY/tonne, an increase of 10 CNY/tonne from last Friday.

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, farmers in Northeastern are even more reluctant to sell their corn inventory, tightening corn supply in market. Some deep processing enterprises raise the price by 10-20 CNY/tonne from last Friday underpinned by bullish sentiment. Nevertheless, current corn price continually refreshes year peaks and has risen to the highest compared to same period over the past 11 years. The high level in market is at increased risk. Market participants should pay attention to sales mentality and following policy guidelines. Before the news gets clear, the overall corn market will maintain the high level.

Sorghum:

New domestic sorghum prices are stable with a partial decline 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 fall to 2,992 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 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 are mixed with the overall index higher at 2,197 CNY/tonne in China 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 ¥6.54)