Animal Feed Ingredient Market Information In China On August 9, 2023

 

Feed Ingredient Price List On August 9, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2856	2845.57	+10.43	RMB/MT
Soybean Meal	4650	4580	+70	RMB/MT
Rapeseed Meal	3840	3810	+30	RMB/MT
Cotton Seed Meal	4225	4165	+60	RMB/MT
DDGS	2955	2938.5	+16.5	RMB/MT
Peruvian Steam Dried Fish Meal	18900-19000	18900-19000	0	RMB/MT
Wheat	2830.46	2828.35	+2.11	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=720.6740RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 9th, corn prices continued to rise. The new crops in the main domestic production areas have entered the stage of fixed production. The weather has caused the market to worry about the yield of the new crops. The auction premium of aged rice is hot, which has a supporting effect on corn. 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 large-scale rainfall weather will affect transportation. It is predicted that the price increase in some areas in the first half of August will drive the national average transaction price to rise for a short time, but the rain is over. After that, the average price of spot transactions is expected to return to a stable and moderate downward trend, and the probability will gradually increase. In the second half of the year, the decline narrowed, the decline stabilized, and the probability of a rise increased. There was no basis for a sharp rise or fall within the month. Pay attention to the impact of weather on soil moisture in northern corn producing areas, and the impact of typhoons and continuous rainfall on transportation.

 

DDGS

 

DDGS prices rose on the 9th. 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

 

The futures market was also supported by a stronger U.S. soybean spot market and traders adjusting positions ahead of the U.S. Department of Agriculture's August supply and demand report on Friday, but improved soybean crop conditions and expectations for good weather conditions in producing areas limited the upside in the CBOT soybean market. Recently, the customs has strengthened the quarantine supervision of imported soybeans, and the processing time at the factory has been delayed. The number of crushed soybeans has decreased and the output has declined accordingly. However, the high number of live pigs in the terminal breeding market and the gradual fall in temperature have increased the demand for soybean meal. The peak season for aquatic products and poultry farming Good benefits have led to an increase in the demand for soybean meal. Under such circumstances, factories continue to increase their willingness to increase the price of soybean meal, and the market remains volatile and strong again.

 

Source: China Feedtrade Net