Today (Apr 6), the market for grains in China is shown as follows:

Corn:

Corn prices in China mostly edge lower today. And the average price is 2,735 CNY/tonne nationwide, a decrease of 26 CNY/tonne from last Friday. Deep-processing enterprises in Shandong offer at 2,770-2,900 CNY/tonne, which mostly adjusts by 10-80 CNY/tonne from last Friday and increases by 20-50 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with over 720 g/L, moisture content within 14.5%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at around 2,660 CNY/tonne, down 40 CNY/tonne from last Friday. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with over 720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is 2,660-2,680 CNY/tonne. At Guangdong port, Grade II new corn is offered at 2,780-2,800 CNY/tonne, unchanged.

Corn price in North China has uninterruptedly declined recently, raising trader’s reluctance in selling corn. There are less than 50 trucks waiting to get unloaded in North China earlier this morning, and all enterprises raise the price by 20-50 CNY/tonne. Nevertheless, some Northeastern traders are unconfident about after-market, so they successively sell their corn in hand. But enterprises have already stocked ample corn. Hence, corn prices among Northeastern companies are offered 30-140 CNY/tonne lower than last Friday (before the Qingming Festival holiday).

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. In addition, market has it rumored that there will be sales of paddy and wheat totaling about 20 mln tonnes specially to ethanol enterprises started from May. If true, corn prices will continue being depressed. Overall, domestic corn prices are predicted to adjust at the low level in the near term. Market participants should keep close eyes on the pace of corn selling, arrivals of imported corn and relevant policies.

Sorghum:

Domestic sorghum prices are stable today, of which dried red sorghum remains unchanged at 4,100 CNY/tonne in Changchun, Jilin and 4,100 CNY in Jinzhong, Jiangxi. An outlook of huge sorghum imports and poor downstream demand are weighing down domestic sorghum prices. 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 CNY/tonne at Tianjin Port and 2,620 CNY at Guangdong ports; bulk raw Australian sorghum is 2,900-2,950 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 is 2,400 CNY at Guangdong ports, 2,370-2,400 CNY/tonne at Qingdao Port, and 2,320-2,330 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 ¥6.55)