Today (Jan 5), the market for grains in China is shown as follows:

Corn:

Corn prices continue rising in China today. And the average price is 2,660 CNY/tonne nationwide, up 23 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,680-2,840 CNY/tonne, an increase of 20-50 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 2,700 CNY/tonne, a rise of 20 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 2,720 CNY/tonne, up 20-40 CNY/tonne from yesterday. At Guangdong port, Grade-II old corn is offered at 2,730-2,750 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 2,520 CNY/tonne, up 20 CNY/tonne from yesterday.

Market has it rumored that logistics will be suspended in advance, so deep-processing enterprises have started stocking up after New Year’s Day. Due to the resurgence of COVID-19 in portions of North China and farmers’ reluctance to sell corn stocks in hand, there are still only around 100 trucks waiting to get unloaded in Shandong earlier this morning. All deep-processing enterprises raise the purchasing price by 20-50 CNY/tonne as corn arrivals cannot meet their daily consumption. Particularly, the price offered by Yingxuan company even breaks through 2,840 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. Plus, corn sales are in faster progress compared to previous years due to high prices, so corn stocks are not many left in some farmers’ hand. With the price increasing, farmers who have sufficient inventories become more reluctant to sell their corn. 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 20-50 CNY/tonne. Hence, short-term corn market still carrys the upside potential based on bullish fundamentals. Market participants should pay attention to sales mentality and policy guidelines.

Sorghum:

New sorghum prices are stable 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 steady to see a partial decline in China today, with the average price at 2,898 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 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 ¥6.48)