Today (Jan 27), the market for grains in China is shown as follows:

Corn:

Corn prices mostly keep steady and partly adjust slightly in China. And the average price is 2,865 CNY/tonne nationwide, flat from yesterday. Deep-processing enterprises in Shandong offer at 2,920-3,090 CNY/tonne, a partial drop of 4-10 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 priced at 2,900-2,910 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 2,910-2,920 CNY/tonne. Both are seeing no change from yesterday. At Guangdong port, Grade-II new corn is priced at 2,940-2,960 CNY/tonne, in tepid trade.

There are more than 700 trucks waiting to get unloaded in Shandong earlier this morning. Some enterprises cut corn price by 4-10 CNY/tonne. For the moment, the proportion of corn added in feed has consecutively increased. The new regulation about wheat auction was issued last night, and this new policy discourages wheat stockpiling behavior, so as to meet feed mills’ demand for wheat. China’s corn imports during the year of 2020 record a fresh high. As the lunar calendar year is drawing to a close, some farmers tend to sell the corn stored outdoors. And corn prices at Southern ports further decrease by 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 at the lunar year end, pushing up the cost. The price of fuel ethanol increases by 190 CNY/tonne in Jilin today. Overall, short-term corn market is expected to fluctuate at the high level. Market participants should keep close eyes on the situation of coronavirus pandemic 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 with a partial rise in China today, with the average price at 2,935 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 2,480 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 ¥6.47)