Animal Feed Ingredient Market Information In China On August 7, 2023

 

Feed Ingredient Price List On August 7, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2841	2840.1	+0.9	RMB/MT
Soybean Meal	4565	4485	+80	RMB/MT
Rapeseed Meal	3820	3810	+10	RMB/MT
Cotton Seed Meal	4165	4135	+30	RMB/MT
DDGS	2938.5	2938.5	0	RMB/MT
Peruvian Steam Dried Fish Meal	18900-19000	18900-19000	0	RMB/MT
Wheat	2823.51	2812.25	+11.26	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=719.2330RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 7th, the price of corn was adjusted strongly. Recently, the domestic corn production areas have been affected by typhoons, and the rainfall has increased. The expected risk of new crop production cuts has intensified, and market sentiment has improved. In August, the inventory of China's aged corn will continue to decline, and the demand for breeding and feed production will continue to increase slightly. The negative impact of the increase in catastrophic rainfall in the northern region on corn in some production areas in August has not yet been determined. At the same time, the impact of high temperature and dry weather on the growth of corn in the later period is also variable. The corn futures market still takes a high proportion of weather factors into consideration. Dalian corn It is difficult for futures prices to fall substantially, and wheat prices continue to maintain a steady and slow rise, which is also good for corn. This is the theoretical basis for the rise in corn prices; High-quality wheat and standard-quality wheat with high cost-effective advantages have obvious substitution advantages for corn, while the national reserve corn continues to be auctioned into the market, and the national reserve rice auction has also started to enter the feed market. Imported low-priced corn with huge prices continues to With a large number of arrivals in Hong Kong, the U.S. midwestern crop planting belt ushered in favorable rainfall and cooler temperatures, which are conducive to soil moisture. CBOT corn futures prices continued to decline, which is the theoretical basis for the decline in corn prices. Therefore, after considering various factors, we predict that on the premise of no emergencies, the average price of corn spot transactions in the first and mid-August period will be stable, moderate and down, and the decline will narrow in the second half of the month, and the probability of stabilization and recovery will increase. Based on the sharp rise and sharp fall, the monthly average price of corn in production areas is more likely to stop rising and turn to a slight decline month-on-month. Pay attention to the influence of weather on soil moisture in northern corn producing areas.

 

DDGS

 

On the 7th, DDGS prices were relatively firm. In August, some corn ethanol production enterprises in China continued to be shut down for maintenance, and the operating rate in the first half of the month was still low. In the second half of the month, as some enterprises resumed production, DDGS production and supply are expected to increase moderately. It is predicted that the supply of DDGS will continue to maintain overall sufficient supply during the month The slightly tight situation remains unchanged. Manufacturers are willing to raise prices due to the overall low inventory, but since the DDGS price has experienced a significant rise in July, its cost-effectiveness advantage has dropped significantly, so the demand terminal only maintains rigid demand purchases, and the supply and demand sides compete strongly. The price of DDGS That is, there is support and suppression. It is predicted that in most of August, the average trading price of DDGS will be stable and slightly up or down.

 

Soybean Meal

 

CBOT soybean futures rose after a Ukrainian drone attack on a Russian port boosted Chicago's soybean oil, corn and wheat markets. After the customs strengthened the supervision of import quarantine links, the number of soybeans entering the factory decreased, and some enterprises reduced production, resulting in a decline in soybean crushing. The tight supply of soybean meal is expected to weaken the impact of the decline in soybeans in the US market. In addition, some farming enterprises have begun to make profits after the rise in hog prices. The peak season for aquatic products and poultry Better breeding benefits have enhanced the willingness of oil mills to raise prices, and soybean meal prices have continued to fluctuate strongly.

 

Source: China Feedtrade Net