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Daily Review on Grain Market in China--4/25/2021

2021-04-25 www.cofeed.com

Today (Apr 25), the market for grains in China is shown as follows:

 

Corn:

 

China’s domestic corn prices keep unchanged with a rise in some regions today. And nationwide price is 2,829 CNY/tonne averagely, an increase of 5 CNY/tonne from Friday. Deep-processing enterprises in Shandong offer at 2,780-3,020 CNY/tonne, a partial decline of 6-10 CNY/tonne from yesterday. At Jinzhou port, Liaoning, 2020 new corn (volume weight with 690-720 g/L, moisture content within 14.5%, impurity with 1%, dent with 8%, mildew with 2%) is purchased at 2,770-2,830 CNY/tonne, up 20 CNY/tonne from the high level. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with 690-720 g/L, moisture content within 15%, impurity wijth 1%, mildew with 2%) is priced at 2,790-2,820 CNY/tonne, unchanged. At Guangdong port, Grade II corn price is priced at 2,920 CNY/tonne, flat from Friday.

 

The number of trucks waiting to get unloaded in North China slightly increases to around 700 earlier this morning but still remains low. Some enterprises cut corn price by 6-10 CNY/tonne. Meanwhile, corn prices move higher bolstered by tight supply and further rise by 10-40 CNY/tonne at Southern ports. Before the Labour Day holiday, corn market may maintain an upward trend with fluctuations. Nevertheless, the demand from Southern market remains flat amidst the resurgence of African swine fever in some regions. Accordingly, pig farms look bearish on after-market and are active in slaughtering hogs. In addition, wheat, paddy and other substitutes for corn is competing for market share, which will continue cracking corn price down. Overall, China’s domestic corn prices are unlikely to increase too excessive in a short term based on bearish fundamentals. 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 with a partial decline today, of which dried red sorghum is 4,000 CNY/tonne in Changchun, Jilin and 3,700-3,800 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 rise in China today, of which raw U.S. sorghum is up 50 CNY to 2,490 CNY/tonne at Tianjin Port and 2,500 CNY at Guangdong ports; bulk raw Australian sorghum is 2,700 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, up 20 CNY to 2,350 CNY/tonne at Qingdao Port, and 2,290 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 ¥6.49)