Today (Jan 18), the market for grains in China is shown as follows:

Corn:

Corn prices continue rising in China. And the average price is 2,855 CNY/tonne nationwide, up 25 CNY/tonne from last Friday. Deep-processing enterprises in Shandong offer at 2,800-3,080 CNY/tonne, a substantial increase of 60-120 CNY/tonne from last Friday. At Jinzhou port, Liaoning, new corn (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is unchanged at 2,900-2,920 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 2,920-2,940 CNY/tonne, up 20 CNY/tonne at the high level. In Gongzhuling, Jilin, GB Grade-III corn is offered at 2,840 CNY/tonne while GB Grade-IV is 2,820 CNY/tonne, flat from last Friday. The purchasing price by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,640 CNY/tonne.

The consecutive fall of corn price in North China has raised farmers’ reluctance of selling. Corn arrivals in Shandong have kept falling in the weekend. There are only less than 155 trucks waiting to get unloaded in Shandong earlier this morning, which declines by 2,313 from the highest of 2,468 last Wednesday. All enterprises raise corn price by 56-120 CNY/tonne, of which Ensign offers at 3,080 CNY/tonne. Besides, due to a reduction in production in main producing regions and less corn released under policy, corn market is heading for a foreseeable tight supply, offering support to market. Plus, corn sales are in faster progress than 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, several firms raise corn price by 40 CNY/tonne today. Overall, short-term corn market is expected to keep strengthening at the high level. Market participants should keep close eyes on sales mentality and policy guidelines.

Sorghum:

New sorghum prices are stable with a partial decline 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 ¥6.48)