Today (Dec 10), the market for grains in China is shown as follows:

Corn:

Corn prices are stable with a partial decline in China. And the average price is 2,552 CNY/tonne nationwide, down 1 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,524-2,638 CNY/tonne, a partial decline of 6-10 CNY from yesterday. 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 2,590-2,600 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 2,590 CNY/tonne, flat from yesterday. At Guangdong port, Grade-II corn price is offered at 2,630 CNY and traded at 2,620 CNY/tonne. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn still at 2,580 CNY/tonne. The purchasing price of Grade-III corn by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,450 CNY/tonne.

There are more than 1,100 trucks waiting to get unloaded earlier this morning, an increase of 104 trucks from yesterday. The majority of companies continued cutting prices by 6-10 CNY/tonne today, but the price still stays at the highest point compared to this period over the past 11 years. Consequently, several traders in Northeastern China continue reducing the purchase price of wet corn, and deep processing enterprises tend to stabilize price as well. In a short term, corn price will probably fall from high levels.

But due to a reduction in production in main producing regions and in policy release, corn market is heading for a foreseeable tight supply. 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 mid-to-long-term market. Market participants should pay attention to sales mentality and guidelines from policies.

Sorghum:

New sorghum prices are stable in China today. Domestic traders and grain deports remain cautious in collecting sorghum due to high prices, and some distillery owners turn to imported sorghum market to save cost. Domestic sorghum is in dismal demand and slow delivery, thus weighing on the market. Merely, 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, grain depots are strict about crop moisture, which also highlights its quality and prices. These are supporting domestic sorghum prices.

Imported sorghum prices steady with a partial decline, and the average price is at 2,987 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 ¥6.55)