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Daily Review on Grain Market in China--12/22/2020

2020-12-22 www.cofeed.com

Today (Dec 22), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in part adjust slightly in China. And the average price is 2,536 CNY/tonne nationwide, flat from yesterday. Deep-processing enterprises in Shandong offer at 2,510-2,658 CNY/tonne, a partial decrease of 6-20 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 2,540-2,570 CNY/tonne and mainly traded at 2,540 CNY/tonne. 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 2,540-2,580 CNY/tonne and mainly traded at 2,540 CNY/tonne. At Guangdong port, Grade-II corn price is traded at 2,630 CNY/tonne, unchanged from yesterday. Tiancheng Group in Siping, Jilin offers the price of Grade-III new corn steadily at 2,400 CNY/tonne. The purchasing price of Grade-III corn by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,430 CNY/tonne compared to yesterday.

 

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. Some traders in Northeast raise the price by 10 CNY/tonne today. In addition, there are more than 800 trucks waiting to get unloaded earlier this morning in Shandong. Some companies continue cutting prices by 6-20 CNY/tonne today. These have together bolstered mid-to-long market based on bullish fundamentals. Market participants should pay attention to sales mentality and policy guidelines.

 

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 2,901 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 205,000 tonnes at Guangdong ports as of Dec 18. 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 with a partial rise in China today, with the overall price at 2,199 CNY/tonne. 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 478,000 tonnes at Guangdong ports as of Dec 18. 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)