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Daily Review on Grain Market in China--1/12/2021

2021-01-12 www.cofeed.com

Today (Jan 12), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in China decline in Northern area but continue jumping in Northeastern area and at ports today. And the average price is 2,819 CNY/tonne nationwide, up 33 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,800-3,010 CNY/tonne, a decrease of 6-50 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 2,840-2,860 CNY/tonne, a further 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 around 2,860 CNY/tonne, up 10 CNY/tonne from yesterday. At Guangdong port, old Grade-II corn price is 2,930 CNY/tonne with an advance of 80 CNY/tonne. Meanwhile, new Grade-II corn price is 2,970 CNY/tonne with an increase of 50 CNY/tonne. In Gongzhuling, Jilin, GB Grade-III corn is offered at 2,800 CNY/tonne while GB Grade-IV is 2,780 CNY/tonne. Both are up 120 CNY/tonne from yesterday. The purchasing price by Longfeng company in Suihua Qinggang, Heilongjiang is 2,640 CNY/tonne, up 20 CNY/tonne from yesterday.

 

After recent drastic increase of corn price in North China, the profits go up. There are more than 2,200 trucks waiting to get unloaded in Shandong earlier this morning. All deep-processing enterprises cut the purchasing price by 6-50 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 in hand become more reluctant to sell their corn. In addition to this, corn futures uninterruptedly go up on Dalian Commodity Exchange. Plus, the price inversion between South and North China offers a support to price at Southern and Northern ports, with a sharp rise of 20-150 CNY/tonne compared to last Friday. Hence, short-term corn market still carries the upside potential based on bullish fundamentals, but is also at more risk as the price has risen to historical highs. Market participants should keep close eyes on sales mentality and policy guidelines.

 

Sorghum:

 

New sorghum prices remain 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 are higher in China today, with the average price at 2,900 CNY/tonne. Imported sorghum market keeps firm under growing feed demand and a sustained recovery in hog stocks, as well as the drive of high-level corn prices. But there is huge arrivals of imported sorghum at ports at present. As of January 8, imported sorghum stocks total 213,000 tonnes at Guangdong ports. And an expected rise in sorghum arrivals will probably weigh down sorghum prices in China.

 

Barley: Imported barley prices rise in China today, with the overall price at 2,250 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 keep climbing, which also bolsters barley prices. But imported barley stocks total 427,000 tonnes at Guangdong ports as of January 8. While more cargoes are expected to arrive at ports, barley market is in weak demand and slow shipments, which will be negative to prices. Overall, imported barley prices are predicted to stay stable in China.

  

(USD $1=CNY ¥6.48)