Today (Jan 4), the market for grains in China is shown as follows:

Corn:

Corn prices continue rising in China today. And the average price is 2,637 CNY/tonne nationwide, up 28 CNY/tonne from New Year’s Day. Deep-processing enterprises in Shandong offer at 2,636-2,800 CNY/tonne, an increase of 24-110 CNY/tonne from New Year’s Day and 10-50 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 2,680 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 around 2,680-2,700 CNY/tonne, unchanged from yesterday. At Guangdong port, Grade-II old corn is offered at 2,730-2,750 CNY/tonne and projected to be traded at 2,730-2,740 CNY/tonne. Meanwhile, Grade-II new corn is traded at 2,800 CNY/tonne. 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 2,500 CNY/tonne, unchanged from New Year’s Day.

There are only around 100 trucks waiting to get unloaded in Shandong earlier this morning, so many deep-processing enterprises raise the purchasing price as corn arrivals cannot meet their daily consumption. Corn prices grow 24-110 CNY/tonne and expand its rises. Particularly, the price offered by Yingxuan company even breaks through 2,800 CNY/tonne. Besides, 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 have been more reluctant to sell their corn inventories. With a lack of marketing volume, some deep-processing firms raise price by 20-70 CNY/tonne. Besides, corn futures continue ramping up on Dalian Commodity Exchange today. In addition to this, the price inversion between South China and North China offers a support to price at Southern and Northern ports, with a rise of 30-50 CNY/tonne. Hence, the overall market will maintain the high level based on bullish fundamentals. Market participants should pay attention to sales mentality and policy guidelines.

Sorghum:

New sorghum prices are stable with a partial decline in China today. 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, large-scale well-known wineries gradually start their stocking up for the Chinese Lunar New Year. Growing downstream demand is thus support domestic sorghum prices to keep firm. But imported sorghum is in huge supply and of low prices, so some small distilleries are purchasing imported sorghum to save cost. This is weighing down domestic sorghum market.

Imported sorghum prices decline in China today, with the average price at 2,871 CNY/tonne. Imported sorghum is in huge arrivals and adequate stocks at domestic port now. As of Dec 25, imported sorghum stocks total 232,000 tonnes at Guangdong ports. And an expected rise in sorghum arrivals will probably weigh down sorghum prices in China. But a sustain recovery in hog stocks and in feed demand will lend support to imported sorghum prices.

Barley: Imported barley prices steady with a partial decline in China today, with the overall price at 2,197 CNY/tonne. As of Dec 25, imported barley stocks total 455,000 tonnes at Guangdong ports. While more cargoes are expected to arrive at ports, 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. However, 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. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.54)