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Daily Review on Grain Market in China--4/14/2021

2021-04-14 www.cofeed.com

Today (Apr 14), the market for grains in China is shown as follows:

 

Corn:

 

Corn prices in China keep unchanged with some rises today. And nationwide price is 2,782 CNY/tonne averagely, an increase of 4 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,830-3,020 CNY/tonne, a partial increase of 10-20 CNY/tonne. 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 2,730-2,770 CNY/tonne, flat from yesterday. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with 680-720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is priced at 2,730-2,770 CNY/tonne, steady. At Guangdong port, Grade II corn is offered at 2,750 CNY/tonne, unchanged.

 

Farmers in Northeast China just hold few corn stocks in hand, and some are busy with spring ploughing and having no time to sell corn. Plus, they are not in hurry to make sales of dry corn. Several deep-processing companies raise the price by 20-30 CNY/tonne today. Additionally, corn prices in North China take uninterrupted declines, raising trader’s reluctance in selling corn. There are only around 100 trucks waiting to get unloaded in North China earlier this morning. Most enterprises offer the price 10-20 CNY/tonne higher today.

 

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, China’s corn imports in March 2021 total 1.931 mln tonnes, a 8.42% increase from February and a 507.2% surge from March 2020, according to National Bureau of Statistics. What’s more, 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, China’s domestic corn prices may mainly adjust with fluctuations 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 3,900 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 down 20 CNY to 2,450 CNY/tonne at Tianjin Port and remains at 2,580 CNY at Guangdong ports; bulk raw Australian sorghum is down 100 CNY to 2,750 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 with a partial decline in China today, of which Canadian barley is 2,400 CNY at Guangdong ports, 2,330 CNY/tonne at Qingdao Port, and down 10 CNY to 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 ¥6.54)