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Daily Review on Grain Market in China--1/15/2021

2021-01-15 www.cofeed.com

Today (Jan 15), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices mostly stay stable with a partial rise in China. And the average price is 2,830 CNY/tonne nationwide, up 2 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,800-2,300 CNY/tonne, an advance of 20 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 2,900 CNY/tonne with an increase of 40 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 2,900 CNY/tonne, up 20 CNY/tonne at the high level. At Guangdong port, Grade-II old corn is traded at 2,960 CNY/tonne and Grade-II new corn is traded at 2,990-3,000 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, unchanged from yesterday. The purchasing price by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,640 CNY/tonne.

 

After a consecutive fall of corn price in North China, there are only more than 900 trucks waiting to get unloaded in Shandong earlier this morning. Deep-processing enterprises mostly take a wait-and-see attitude. And several firms raise price by 20 CNY/tonne, of which Ensign offers at 3,000 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 formers years due to early high prices, so corn stocks are not many left in some farmers’ hand. In addition, some regions have been in under strict control and lockdowns due to the second wave of COVID-19, so the purchase and sale of corn have bogged down. With a lack of marketing volume, corn prices at Southern and Northern ports further rise by 20-40 CNY/tonne today. In a short term, corn market is 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 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 ¥6.46)