Today (Dec 16), 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 2,537 CNY/tonne nationwide, a decrease of 2 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,520-2,620 CNY/tonne, a partial decrease of 4-10 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 2,550 CNY/tonne and down 10-15 CNY/tonne 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 2,550 CNY/tonne, down 10 CNY/tonne from yesterday. At Guangdong port, Grade-II corn price is traded at 2,620 CNY/tonne, flat from yesterday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn at 2,400 CNY/tonne, a drop of 80 CNY/tonne from earlier this morning and yesterday. The purchasing price of Grade-III corn by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,430 CNY/tonne.

There are more than 700 trucks waiting to get unloaded earlier this morning in Shandong. Some companies cut prices by 4-10 CNY/tonne today. Besides, affected by bearish market sentiment, several deep processing enterprises in Northeastern area reduce the price by 10-80 CNY/tonne, and prices at Northern ports further decline by 10-15 CNY/tonne. And corn prices still carry the potential to decline in the near term. Nevertheless, due to a reduction in production in main producing regions, corn market is heading for a foreseeable tight supply, offering support to market. And farmers in Northeastern are even more reluctant to sell their corn inventory after seeing a drop of corn price. Market participants should pay attention to sales mentality.

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 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 251,000 tonnes at Guangdong ports as of Dec 11. 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 464,000 tonnes at Guangdong ports as of Dec 11. 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)