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Daily Review on Grain Market in China--4/9/2021

2021-04-09 www.cofeed.com

Today (Apr 9), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in China continue to rise today. And the average price is 2,768 CNY/tonne nationwide, a rise of 14 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,780-3,010 CNY/tonne, a slight adjustment of 10-30 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 2,690-2,730 CNY/tonne, up 10-20 CNY/tonne from yesterday. At Guangdong port, Grade II new corn is offered at 2,800 CNY/tonne, unchanged.

 

Last wave of decline in corn price has raised trader’s reluctance in selling corn. Some enterprises further raise price by 20-50 CNY/tonne. But after a consecutive rise in price in North China, there are more than 200 trucks waiting to get unloaded in Shandong earlier this morning. By contrast, there are only about 50 trucks each day in the previous three days. In this case, corn prices among most deep-processing enterprises stop the rally and turn to be stable today. If corn arrivals in Shandong keep climbing, it will not rule out the potential of further drop in price.

 

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 is 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 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 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 ¥6.54)