Today (Mar 24), the market for grains in China is shown as follows:

Corn:

Corn prices in China stay stable with a partial adjustment today. And the average price is 2,846 CNY/tonne nationwide, flat from yesterday. Deep-processing enterprises in Shandong offer at 2,924-3,080 CNY/tonne, a partial decrease of 10 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 2,770 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 2,780 CNY/tonne. Both are flat from yesterday. At Guangdong port, Grade II new corn is offered at around 2,830 CNY/tonne, unchanged.

There are around 800 trucks waiting to get unloaded in North China earlier this morning, and some businesses further reduce corn price by 10 CNY/tonne. 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 is light at Southern ports. Additionally, wet corn selling in Northeast China has almost been finished in some regions, and some enterprises offer 20 CNY/tonne higher.

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. 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, domestic 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 markets 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 2,500-2,520 CNY/tonne at Tianjin Port and 2,620-2,650 CNY at Guangdong ports; bulk raw Australian sorghum is 3,000 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 in China today, of which Canadian barley remains unchanged at 2,400 CNY at Guangdong ports, 2,400 CNY/tonne at Qingdao Port, and at 2,370-2,380 CNY at Nantong Port. There are more imported barley cargoes expected to arrive at domestic ports, and some feed manufacturers are also making purchases. Overall, imported barley prices are predicted to be little changed and stay stable in China.

(USD $1=CNY ¥6.52)