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Daily Review on Grain Market in China--12/14/2020

2020-12-14 www.cofeed.com

Today (Dec 14), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in part decline in some regions of China. And the average price is 2,545 CNY/tonne nationwide, a decrease of 7 CNY/tonne from last Friday. Deep-processing enterprises in Shandong offer at 2,520-2,620 CNY/tonne, a partial adjustment of 4-12 CNY from last Friday and 4-20 CNY/tonne 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 2,570 CNY/tonne and down 30 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 2,570 CNY/tonne, up 20 CNY/tonne from yesterday. At Guangdong port, Grade-II corn price is traded at 2,630 CNY/tonne, flat from last Friday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn at 2,540 CNY/tonne, a drop of 20 CNY/tonne from earlier this morning and last Friday. The purchasing price of Grade-III corn by Longfeng company in Suihua Qinggang, Heilongjiang is at 2,440 CNY/tonne, down 10 CNY/tonne from last Friday.

 

There are more than 700 trucks waiting to get unloaded earlier this morning in Shandong. Some companies cut prices by 4-12 CNY/tonne today. Besides, corn futures post successive losses. Some traders in Northeastern area reduce the price of dry corn, and prices at Northern ports decline by 20-30 CNY/tonne compared to last Friday. Nevertheless, 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 building storages and 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. Market participants should pay attention to sales mentality and guidelines from policies.

 

Sorghum:

 

New sorghum prices are stable with a partial decline 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 drop with the average price at 2,904 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

 

(USD $1=CNY ¥6.54)