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Daily Review on Grain Market in China--1/14/2021

2021-01-14 www.cofeed.com

Today (Jan 14), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices mostly stay stable and partly adjust slightly in China. And the average price is 2,828 CNY/tonne nationwide, up 4 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,800-2,980 CNY/tonne, a decline of 10 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 steadily priced at 2,860 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 2,880-2,900 CNY/tonne with an increase of 20 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 1,700 trucks waiting to get unloaded in Shandong earlier this morning. Several deep-processing enterprises further cut the purchasing price by 10 CNY/tonne. Besides, farmers in Northeastern area used to suspend corn selling after the Little New Year, so there is only half a month left to make sales. Likewise, the second wave of COVID-19 has triggered concerns over lockdowns in villages. In addition to this, farmers who have stocks in hand are more willing to sell corn as its prices record a new high. Deep-processing enterprises mostly take a wait-and-see attitude. Nevertheless, 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. Corn prices at Southern and Northern ports further rise by 20-30 CNY/tonne today. In a short term, corn prices are expected to keep range-bound 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 decline in China today, with the average price at 2,898 CNY/tonne. Imported soybean cargoes are arriving at port now. There was one ship or 70,000 tonnes arriving at ports and some 50,000 tonnes of U.S. sorghum expected to arrive on January 15. As of January 8, imported sorghum stocks total 213,000 tonnes at Guangdong ports. And an expected rise in sorghum arrivals will be weighing down sorghum prices in China. But 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.

 

Barley:

 

Imported barley prices steady 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 ¥6.47)