Today (Apr 8), 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 2,754 CNY/tonne nationwide, a rise of 17 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,780-3,010 CNY/tonne, which increases by 10-40 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with 680-720 g/L, moisture content within 14.5%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at 2,680-2,710 CNY/tonne, up 20-40 CNY/tonne from yesterday. 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 mostly not available and partly raised to 2,730 CNY/tonne, up 50 CNY/tonne from the high level. At Guangdong port, Grade II new corn is offered at 2,800 CNY/tonne, up 20 CNY/tonne from the high level.

An uninterrupted gain in corn futures brings some bullish sentiment. Corn price in North China has uninterruptedly declined recently, raising trader’s reluctance in selling corn. There are still less than 100 trucks waiting to get unloaded in Shandong earlier this morning, and all enterprises raise the price by 10-40 CNY/tonne. But enterprises have already stocked ample corn. Nevertheless, there is not much wet corn left, so several companies offer 30 CNY/tonne higher.

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, imported grain are arriving at ports in succession, and wheat is more cost-effective than corn, leading to a sluggish demand for corn. 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, dominated by bearish fundamentals, the upside for China’s domestic corn market is predicted to be limited in spite of a brief growth. Market participants should keep close eyes on the pace of corn selling, arrivals of imported corn and relevant policies.

Sorghum:

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

Imported sorghum prices steady with a partial decline in China today, of which raw U.S. sorghum is 2,470 CNY/tonne at Tianjin Port and 2,620 CNY at Guangdong ports; bulk raw Australian sorghum is down 50 CNY to 2,850 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 stable in China today, of which Canadian barley is 2,400 CNY at Guangdong ports, 2,350 CNY/tonne at Qingdao Port, and 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 ¥6.55)