Today (Mar 17), the market for grains in China is shown as follows:

Corn:

Corn prices in part further drop in China today. And the average price is 2,860 CNY/tonne nationwide, a decrease of 10 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,910-3,060 CNY/tonne, a decline of 6-30 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at 2,810 CNY/tonne. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is 2,820 CNY/tonne. Both are 20 CNY/tonne lower from yesterday. At Guangdong port, Grade II new corn remains flat at 2,870-2,900 CNY/tonne.

There are around 300 trucks waiting to get unloaded in Shandong earlier this morning. Those enterprises mostly stay on the sideline and some reduce corn price by 10 CNY/tonne. Wet corn is hard to store with weather in Northeast China warming, so farmers accelerate the pace of sales, and some traders also sell corn successively so as to recoup cash. In this case, the marketing volume gradually picks up, so some businesses further lower the price by 10-50 CNY/tonne. On the other side, the demand from Southern market is still flat, and African swine fever takes resurgence in some areas. Accordingly, pig farms look bearish on after-market and are active in slaughtering hogs. Besides, Bureau of Animal Husbandry and Veterinary Services, China’s Ministry of Agriculture and Rural Affairs issued a work program on March 15, in a bid to ensure the supply of feed grain and stabilize market price, which was about the reduction and replacement of corn and soybean meal used in feed. With the alternatives of corn increasing, corn trading at Southern ports is light. Nevertheless, 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. Additionally, grain depots in some regions start purchasing corn for new rotation, and price stays at the high level. These have all offered support to corn prices. Overall, corn market still carries the potential to fall in the short run based on bearish factors. Market participants should keep close eyes on the pace of corn selling, arrivals of imported corn and development of African swine fever.

Sorghum:

Domestic sorghum prices are stable today, of which dried red sorghum remains unchanged at 4,100 CNY/tonne in Changchun, Jilin and 4,160 CNY in Jinzhong, Jiangxi. Traders and brewery owners are making purchases now and logistics are at a normal state, in addition to small supply in the market, so domestic sorghum prices are supported. But downstream market are reluctant to accept high prices, which is weighing on the market. Overall, domestic sorghum market is predicted to be little change and keep steady overall.

Imported sorghum prices steady in China today, of which raw U.S. sorghum is 2,580-2,600 CNY/tonne at Tianjin Port and 2,650-2,680 CNY at Guangdong ports; bulk raw Australian sorghum is 3,100 CNY at Tianjin Port. Huge sorghum arrivals at ports are weighing on prices, but as a substitute for corn, imported sorghum keeps firm under the support of high corn prices. Overall, imported sorghum prices are expected to steady before huge cargoes arriving at ports.

Barley:

Imported barley prices steady with a partial decline in China today, of which Canadian barley remains at 2,440 CNY at Guangdong ports, goes down 20 CNY to 2,400 CNY/tonne at Qingdao Port, and remains at 2,370-2,380 CNY at Nantong Port. There are more imported barley cargoes expected to arrive at domestic ports, and some feed millers are making purchases with the completion of the Chinese Lunar New Year holidays. Overall, imported barley prices are predicted to be little changed and stay stable in China.

(USD $1=CNY ¥6.50)