Today (Feb 2), the market for grains in China is shown as follows:

Corn:

Corn prices keep steady with partial adjustment in China. And the average price is 2,872 CNY/tonne nationwide, up 4 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,940-3,130 CNY/tonne, a partial increase of 10-20 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 2,880-2,890 CNY/tonne, 10-20 CNY/tonne lower than yesterday. 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 2,880-2,890 CNY/tonne, 20 CNY/tonne lower than yesterday. At Guangdong port, Grade-II new corn is offered at 2,940-2,960 CNY/tonne.

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. There are only around 300 trucks waiting to get unloaded in Shandong earlier this morning, still staying at a low level. Some enterprises further raise corn price by 10-20 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. Besides, China booked nearly 6 mln tonnes of U.S. corn yet, the biggest purchase in a single week ever made, according to the U.S. Agriculture Department. Overall, short-term corn market is expected to continue fluctuating 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. Brewery owners have almost completed replenishment toward the Spring Festival, so downstream demand is limited. And as imported sorghum is in huge supply and of low prices, some small distilleries are purchasing imported sorghum to save cost. However, 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, lending support to domestic sorghum market.

Imported sorghum prices are stable with a partial decline in China today, with the average price at 2,906 CNY/tonne. As of January 29, imported sorghum stocks total 286,000 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 with a partial decline in China today, with the overall price at 2,462 CNY/tonne. Imported barley stocks total 366,000 tonnes at Guangdong ports as of January 29, and more vessels are expected to reach domestic ports. And domestic corn prices have also fallen fractionally. These are negative to barley prices. But in addition to higher tariffs against Australian barley, China has also halted barley imports from the country’s largest grain exporter whose shipments were found with pests on multiple occasions, further disrupting barley trade between these two nations. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.47)