Today (Jan 20), the market for grains in China is shown as follows:

Corn:

Corn prices mainly keep steady with a partial adjustment in China. And the average price is 2,867 CNY/tonne nationwide, up 3 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,800-3,074 CNY/tonne, a partial adjustment of 6-20 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 2,920-2,940 CNY/tonne, up 20 CNY/tonne at the high 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 2,940-2,950 CNY/tonne, up 10 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 yesterday. The purchasing price by Longfeng company in Suihua Qinggang, Heilongjiang is unchanged at 2,640 CNY/tonne.

After corn prices in North China rise to high levels, the profits go up. Corn futures pare gains today, affecting market sentiment. There are around 700 trucks waiting to get unloaded in Shandong earlier this morning, an increase of 465 trucks from yesterday. Most of enterprises are taking a wait-and-see attitude, and corn prices partly fluctuate by 6-20 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, due to the strict virus containment measures and lockdowns in some regions amid the second wave of COVID-19, the purchase and sale of corn have bogged down. What’s more, the freight goes up as the lunar year is drawing to a close, pushing up the cost. Consequently, corn prices at Northern and Southern ports further rise by 10-50 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 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. As of January 15, imported sorghum stocks total 210,000 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 393,000 tonnes at Guangdong ports as of January 15. 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)