Animal Feed Ingredient Market Information In China On July 20, 2023

 

Feed Ingredient Price List On July 20, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2842.63	2842.11	+0.52	RMB/MT
Soybean Meal	4400	4370	+30	RMB/MT
Rapeseed Meal	3885	3885	0	RMB/MT
Cotton Seed Meal	3980	3980	0	RMB/MT
DDGS	2881	2881	0	RMB/MT
Peruvian Steam Dried Fish Meal	18900-19000	18900-19000	0	RMB/MT
Wheat	2799.12	2799.87	-0.75	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=718.4631RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 20th, the price of corn was adjusted strongly. The surplus grain at the grassroots level in China has bottomed out, the stocks of the main grain holders are constantly depleting, the rainy weather is coming, it is difficult to buy and sell corn at the grassroots level, the supply level is reduced, and the purchase price of enterprises is relatively volatile. In the second half of 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 continue to be in a period of shortage. Theoretically, the probability of corn prices rising is relatively high. In terms of weather, due to the impact of El Niño climate, the probability of extreme abnormal high temperature and dry weather in Asia is relatively high. China's new season corn production and supply are full of variables. The focus of China's corn market from July to September will be the impact of weather on corn yield and total yield Focusing on the futures market, the probability of speculation on the weather topic in the futures market is high, which also forms a bullish support for corn prices. But at the same time, early spring corn is sporadically on the market in some parts of the south, low-quality wheat and standard-quality wheat are more cost-effective than corn, and market rumors about the auction of national reserve rice also suppress the price of aged corn. It is predicted that the second half of July will be different. Regional corn prices will go up and down at the same time, but in most regions, the price is mainly stable, and the probability that the national average transaction price will be stable and slightly weak is further increasing. In the short term, corn prices will have a moderately weak correction Trends exist. However, the probability that the monthly average price will continue to rise month-on-month in July remains unchanged.

 

DDGS

 

On the 20th, the price of DDGS was relatively stable. In the second half of July, the operating rate of China's mainstream corn ethanol production enterprises will continue to remain nearly half high, and some enterprises will enter the shutdown maintenance stage, and the DDGS production and supply will continue to maintain the overall relatively sufficient situation. With the recovery of DDGS prices since the end of June, its cost-effective advantage over corn and other energy raw materials and plant meal raw materials has declined again, and the new purchase demand on the demand side has once again returned to rigid demand purchases, and the purchase enthusiasm has declined. Prediction 7 During the second half of the month, the price of DDGS products may be adjusted again.

 

Soybean Meal

 

Soybean futures rose for the fifth day in a row, hitting their highest level in more than a month as forecasts of hot and dry weather sparked concerns about the U.S. Midwest soybean crop, though expectations for a huge Brazilian soybean export and increased plantings limited its increase. Recently, due to better crushing profits, factories have started operations better, and the output of soybean meal is large, but the amount of soybean meal stockpiled by downstream feed farming enterprises has stagnated. Overlaying the critical period of US soybean weather speculation, the market is more sensitive to bullish themes, optimistic about the market outlook and rising costs Strengthening the power of oil mills to raise prices, soybean meal continued to fluctuate slightly.

 

Source: China Feedtrade Net