Today (Feb 19), the market for grains in China is shown as follows:

Corn:

Corn prices mostly keep steady and partly increase in China today. And the average price is 2,904 CNY/tonne nationwide, an increase of 11 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,940-3,130 CNY/tonne, a partial rise of 10 CNY/tonne from yesterday. At Guangdong port, Grade-II new corn is priced at 2,960-2,990 CNY/tonne, and Grade-II old corn is priced at 2,930-2,950 CNY/tonne. Both are up 10 CNY/tonne from the high level. At Nantong port, Jiangsu, Grade-II new corn is offered at around 2,980 CNY/tonne, down 20 CNY/tonne from Feb 5. And Grade-II old corn is offered at 2,950 CNY/tonne.

It’s still full of the atmosphere of Spring Festival. 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, raising market’s reluctance in selling corn. As a result, corn flowing into market is reduced. But downstream deep-processing enterprises have resumed the purchase in succession. Corn stocks have basically fallen to a low level after consumptions during the holidays, so many enterprises are in need of making replenishment. These have offered support to corn prices. Nevertheless, the proportion of corn added in feed has consecutively increased at the moment. Besides, China’s corn imports record a historical high. Likewise, China also increases the imports of sorghum, paddy and wheat as the alternatives of corn. Overall, corn market will likely keep strengthening in the near term. Market participants should keep close eyes on the next policy guidelines.

Sorghum:

New domestic sorghum prices are partially not available in China today. Some brewery owners and traders have not started work yet, and logistics have also not returned to normal. In addition, brewery owners have made adequate replenishment ahead of the new year. Hence, purchases and sales are both sluggish now. Domestic sorghum market is predicted to be little change and keep steady overall.

Imported sorghum prices are mostly not available in China today, with the average price at 2,918 CNY/tonne. As the substitute of corn, imported sorghum prices are slightly higher under the support of high-priced corn. The price is expected to steady with a strengthening trend before large cargoes of imported sorghum arriving at domestic ports.

Barley:

Imported barley prices are mostly not available in China today, with the overall price at 2,450 CNY/tonne. More sorghum vessels are expected to reach domestic ports, and domestic market is in thin trade now as some feed manufacturers and port traders have not come back to work. Overall, imported barley prices are predicted to be little change and stay stable in China.

(USD $1=CNY ¥6.46)