Animal Feed Ingredient Market Information In China On August 16, 2023

 

Feed Ingredient Price List On August 16, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2885.21	2886.37	-1.16	RMB/MT
Soybean Meal	4745	4740	+5	RMB/MT
Rapeseed Meal	3900	3900	0	RMB/MT
Cotton Seed Meal	4225	4225	0	RMB/MT
DDGS	2961.5	2955	0+6.5	RMB/MT
Peruvian Steam Dried Fish Meal	18800-19000	18800-19000	0	RMB/MT
Wheat	2923.92	2924.11	-0.19	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=729.4585RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 16th, corn prices were adjusted weakly. Judging from the current transactions of feed rice, all the auctions in the first round were sold at a wide premium, while in the second round, some auctions were unsold, and the premium range was also significantly reduced. It is rumored in the market that most of the grain sources have been sold in the two rounds of targeted rice auctions and they are required to be delivered within seven days. The next targeted rice auction may be postponed or temporarily suspended. In the second half of 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. According to the available information, the negative impact of catastrophic rainfall in the northern region on the main corn producing areas in Northeast China is limited. However, in the short term, the reluctance to sell grain holdings is still high, and the willingness to raise prices is still strong. It is predicted that the price of corn in the first part of the second half of August will continue to be moderately strong. If the rainfall in the northeast production area does not have a substantial impact on the growth of corn in the second half and the second half of the month, the increase in corn prices will narrow and stagflate or even stop. The chances of turning down will increase, but the continued rise in wheat prices will limit the decline in corn. Pay attention to the impact of typhoons and rainfall in the northern corn-producing areas on corn growth, and the impact of continuous rainfall on transportation.

 

DDGS

 

On the 16th, the price of DDGS was strong. At present, the price of DDGS has reached a high level, and the demand from the farming side is relatively stable. Downstream feeding enterprises are more cautious in their inquiries and purchases. Some corn alcohol enterprises have begun to overhaul their equipment. The high level supports the price of DDGS to a certain extent. In the second half of August, the operating rate of some corn starch production enterprises in China is expected to recover to a limited extent after the maintenance, but the overall DDGS production and supply will continue to remain low in the first and second half of August, and the tight production and supply situation remains unchanged. The price of raw corn continues to rise, and the price of plant meal raw materials generally continues to be strong, which continues to boost the price of DDGS. Manufacturers' inventory is still low and their willingness to raise prices is still high, but its price/performance ratio continues to be at a significant disadvantage to limit its increase. Prediction In the early part of the second half of August, the DDGS market trading price is generally still stable and slightly strong.

 

Soybean Meal

 

The U.S. Department of Agriculture report showed that the good and good rate of soybeans increased by 4% to 59%, higher than the 58% in the same period in 2022 and the market forecast of 55%, and the strong risk aversion in the commodity and stock markets intensified the negative pressure on the agricultural product market , but improved soybean sales and drought in producing areas may limit the decline in soybean futures. Although the output of the factory has increased after the crushing volume has risen, the active delivery of feed farming enterprises has caused the soybean meal inventory to stop rising and turn down. As the peak of arrivals in Hong Kong gradually passes, the number of soybean imports will gradually decrease. In the future market, the demand for soybean meal for pig and poultry feed is good. The expectation of tight supply of soybeans and the decline in soybean meal inventory will continue to support the factory's willingness to raise prices for soybean meal, and will continue to remain strong in the near future. 

 

Source: China Feedtrade Net