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Daily Review on Grain Market in China--1/13/2021

2021-01-13 www.cofeed.com

Today (Jan 13), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in China decline in Northern area but increase in Northeastern area and at ports today. And the average price is 2,824 CNY/tonne nationwide, up 5 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,800-2,994 CNY/tonne, a slight adjustment of 6-60 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 2,860 CNY/tonne, a further rise of 20 CNY/tonne at the low level. 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 2,860-2,880 CNY/tonne, up 20 CNY/tonne at the high level. At Guangdong port, old Grade-II corn price is 3,000 CNY/tonne while new Grade-II corn price is 3,040 CNY/tonne. Both are up 70 CNY/tonne from yesterday. In Gongzhuling, Jilin, GB Grade-III corn is offered at 2,800 CNY/tonne while GB Grade-IV is 2,780 CNY/tonne, unchanged from yesterday. The purchasing price by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,640 CNY/tonne.

 

After recent drastic increase of corn price in North China, the profits go up. Besides, the rumor that logistics will be suspended in advance due to the COVID-19 is flying around the market. Consequently, traders are successively selling their wet corn stocks in hand. There are more than 2,500 trucks waiting to get unloaded in Shandong earlier this morning. All deep-processing enterprises further cut the purchasing price by 6-38 CNY/tonne. Besides, due to a reduction in production in main producing regions and reducing corn released under policy, 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. Cargill, based in Songyuan, even offers the price 200 CNY/tonne higher today. Plus, the price inversion between South and North China offers a support to price at Southern and Northern ports, with a sharp rise of 20-70 CNY/tonne compared to last Friday. In a short term, corn prices are expected to fluctuate slightly in North area and stay strong at the high level in Northeast area. 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 stable with a partial rise in China today, with the average price at 2,901 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 partially in China today, with the overall price at 2,288 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 ¥6.46)