Today (Apr 7), the market for grains in China is shown as follows:

Corn:

Corn prices in China mostly increase and partly fall back today. And the average price is 2,737 CNY/tonne nationwide, a rise of 2 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,780-2,960 CNY/tonne, which increases by 20-90 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 2,660-2,670 CNY/tonne, up 10 CNY/tonne from the high level. 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 100 trucks waiting to get unloaded in North China earlier this morning, and all enterprises raise the price by 20-70 CNY/tonne. But enterprises have already stocked ample corn. Nevertheless, there is not much wet corn left, so some traders are staying on the sideline and waiting for the moment. Corn prices slightly fluctuate by 20-30 CNY/tonne among some businesses.

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 lower today, of which dried red sorghum goes down 100 CNY to 4,000 CNY/tonne in Changchun, Jilin and down 100 CNY to 4,000 CNY in Jinzhong, Jiangxi. Downstream buyers have limited acceptance of high sorghum prices, which is weighing down the market. Overall, domestic sorghum market is predicted to steady with an overall weak trend.

Imported sorghum prices are mixed in China today, of which raw U.S. sorghum is down 30 CNY to 2,470 CNY/tonne at Tianjin Port and 2,620 CNY at Guangdong ports; bulk raw Australian sorghum is down 50 CNY to 2,900 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 with a weakening trend before huge cargoes arriving at ports.

Barley:

Imported barley prices are mixed in China today, of which Canadian barley is 2,400 CNY at Guangdong ports, down 50 CNY to 2,350 CNY/tonne at Qingdao Port, and down 30 CNY to 2,300 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 steady with an overall weak trend in China.

(USD $1=CNY ¥6.54)