Today (Dec 8), the market for grains in China is shown as follows:

Corn:

Corn prices in China keep steady with a slight fluctuation today. And the average price is 2,556 CNY/tonne nationwide, unchanged from yesterday. The price among deep-processing enterprises in Shandong prevails at 2,534-2,640 CNY/tonne with a decrease of 4-10 CNY/tonne in several regions 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 2,590-2,600 CNY/tonne, up 10 CNY/tonne at the high level. 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, flat from yesterday. At Guangdong port, Grade-II corn price remains at 2,630 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 2,450 CNY/tonne, unchanged with yesterday.

The number of trucks waiting to get unloaded in earlier this morning remains at around 900 as the weather in North China becomes clear, and several business reduce corn price by 4-10 CNY/tonne due to an increase of supply. Corn price still stays at the highest compared to the same period over the past 11 years. The high level in market is at increased risk. Consequently, individual deep processing enterprises tentatively cut purchasing price. Nevertheless, 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. And farmers in Northeastern are even more reluctant to sell their corn inventory after corn price goes down in parts of Heilongjiang. These are bullish for market. 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 steady at 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 199,000 tonnes at Guangdong ports as of Dec 4. 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 steady 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 475,000 tonnes at Guangdong ports as of Dec 4. 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 ¥6.53)