Today is 11/29/2021

Daily Review on Grain Market in China--4/20/2021

2021-04-20 www.cofeed.com

Today (Apr 20), the market for grains in China is shown as follows:

 

Corn:

 

China’s domestic corn prices keep unchanged with an adjustment in some regions today. And nationwide price is 2,805 CNY/tonne averagely, an increase of 1 CNY/tonne from yesterday. Deep-processing enterprises in Shandong offer at 2,780-3,020 CNY/tonne, a partial adjustment of 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 2,760-2,800 CNY/tonne. At Bayuquan port, Liaoning, the purchasing price of 2020 new corn (volume weight with 690-720 g/L, moisture content within 15%, impurity with 1%, mildew with 2%) is priced at 2,780-2,810 CNY/tonne. Both are unchanged from yesterday. At Guangdong port, Grade II corn price remains at 2,840-2,860 CNY/tonne.

 

Farmers in Northeast China just hold few corn stocks in hand, and some are busy with spring ploughing and have no time to sell corn. Plus, they are not in hurry to make sales of dry corn. These have together given a boost to market. Corn prices among Northeastern deep-processing companies remain unchanged today. But there are only around 300 trucks waiting to get unloaded in North China earlier this morning, so corn prices slightly fluctuate by 10 CNY/tonne in some regions. Wheat is more cost-effective than corn, so the proportion of wheat in feed is significantly higher. And imported grain is arriving at ports in succession, leading to a sluggish demand for corn. Besides, the demand from Southern market remains flat amidst the resurgence of African swine fever. Accordingly, pig farms look bearish on after-market and are active in slaughtering hogs. Overall, China’s domestic corn prices may mainly adjust with fluctuations in the near 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 down 100 CNY to 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 in China today, of which raw U.S. sorghum is 2,440 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, 2,330 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 ¥6.51)