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Daily Review on Grain Market in China--3/31/2021


Today (Mar 31), the market for grains in China is shown as follows:




Corn prices in China all keep declining today. And the average price is 2,801 CNY/tonne nationwide, a decrease of 21 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,830-3,000 CNY/tonne, a drop of 10-80 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with 690 g/L, moisture content within 15%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at 2,720-2,740 CNY/tonne, down 20-30 CNY/tonne compared to yesterday. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with over 690 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is 2,730 CNY/tonne, down 20-30 CNY/tonne from yesterday. At Guangdong port, Grade II new corn is offered at 2,780-2,800 CNY/tonne, down 20 CNY/tonne from the low level.


Some Northeastern traders are more worried after seeing continuous declines in price, so they successively sell their corn in hand. But enterprises have already stocked ample corn. Hence, corn prices are offered 10-40 CNY/tonne lower today among Northeastern companies, and quite a little corn flows into North China. There are around 1,100 trucks waiting to get unloaded in North China earlier this morning, and thereby businesses further reduce corn price by 10-80 CNY/tonne. In addition, 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 has issued a work program, in a bid to ensure the supply of feed grain and stabilize market price, which is 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. Market has it rumored that there will be sales of paddy and wheat totaling about 20 mln tonnes specially to ethanol enterprises. If true, corn prices will be restricted. 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 relevant policies.




Domestic sorghum prices are stable today, of which dried red sorghum remains unchanged at 4,100 CNY/tonne in Changchun, Jilin and 4,120 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 is 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 2,510 CNY/tonne at Tianjin Port and 2,620 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.




Imported barley prices steady in China today, of which Canadian barley is 2,400 CNY at Guangdong ports, 2,370-2,400 CNY/tonne at Qingdao Port, and 2,340-2,350 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 ¥6.57)