Animal Feed Ingredient Market Information In China On July 10, 2023

Feed Ingredient Price List On July 10, 2023

Market Comments and Concern

Corn/Maize

Corn prices continued to be strong on the 10th. Recently, the turnover rate of the national reserve rotation auction has declined, the premium has narrowed, and the market has gradually cooled down. According to statistics, the cumulative sales of corn stored in China Grain last week was 821,500 tons, a week-on-week increase of 44%; the actual transaction volume was 668,900 tons, a week-on-week increase of 40%; the transaction rate was 81.5%, a week-on-week decrease of 3 percentage points. In July, China's aged corn inventory will continue to be depleted, the demand for breeding and feed production will continue to increase slightly, and the supply of corn will gradually enter a stage of shortage. Theoretically, the probability of rising corn prices is high. In terms of weather, due to the impact of El Niño, the probability of extremely high temperature and drought in Asia is relatively high. China's new season corn production and supply are full of variables. From July to September, the focus of China's corn market will focus on the impact of weather on corn yield and total yield , The futures market is more likely to speculate on weather topics. It is predicted that China's corn price will be generally stable and relatively strong in July, and the probability of the monthly average price continuing to rise month-on-month is high. Price increases are limited. Looking further away, corn prices tend to rise but not fall in general during the period from August to September, but unless weather factors significantly affect the production of new season corn, the increase will be limited.

DDGS

On the 10th, the price of DDGS rose steadily. The inventory of DDGS has been digested recently, and the overall performance of DDGS shipments is acceptable. Most ethanol factories have strong sentiments to stand up for prices, and maintain a bullish attitude towards the market outlook, and the recent spot price of soybean meal has fluctuated and adjusted after rising, which supports the price of DDGS to a certain extent. During July, some alcohol companies plan to overhaul or reduce production. The output of alcohol DDGS is expected to decline, the downstream demand is relatively stable, and the spot supply of DDGS will decrease in the later period. It is expected that DDGS prices will still have room to rise in the short term.

Soybean Meal

The CBOT soybean futures market closed down, with the benchmark period down about 1.5 percent, as weather forecasts showed welcome rains across the U.S. Midwest agricultural belt, and more rains to come later to help alleviate drought pressure on crop growth. At present, it is the peak time for soybeans to arrive in Hong Kong. After the soybean futures price in the US market continued to rise and was hindered, there was a callback, which slowed down the pace of delivery by feed farming companies, and the wait-and-see sentiment in the market continued to heat up. The rebound in inventory and the subsequent decline in the cost of imported soybeans have weakened the willingness of factories to continue to raise prices, and the price of soybean meal is expected to maintain a volatile adjustment market.

Source: China Feedtrade Net