Animal Feed Ingredient Market Information In China On August 17, 2023

 

Feed Ingredient Price List On August 17, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2880.68	2885.21	-4.53	RMB/MT
Soybean Meal	4810	4755	+55	RMB/MT
Rapeseed Meal	+55	3900	+40	RMB/MT
Cotton Seed Meal	4240	4225	+15	RMB/MT
DDGS	2961.5	2961.5	0	RMB/MT
Peruvian Steam Dried Fish Meal	18800-19000	18800-19000	0	RMB/MT
Wheat	2923.51	2923.92	-0.41	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=731.7109RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices continued to drop on the 17th. The growth of corn is the key in China. Typhoon "Kanu" landed in the Northeast in mid-August, and the impact was weaker than expected. The weather's interference with new corn production was relatively limited, and the cooling of hype sentiment was negative for the spot market. 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 17th, the price of DDGS was relatively firm. 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

 

Because the weather in the Midwest will become dry, which is not conducive to the growth of soybean crops, which are in a critical period, but the continued decline in crude oil due to worries about the global economic growth outlook limits the increase in soybean prices. The CBOT soybean futures benchmark period closed about 1.5% higher . Due to the delay in the arrival of soybeans from some factories due to customs inspections of imported soybeans, the suspension of billing, limited delivery and shutdown expectations of factories have gradually highlighted the tightening of soybean meal supply. The profit of hog farming has gradually turned from loss to profit, and when the profit of poultry farming is good, the factory's willingness to raise the price of soybean meal is still strong, which will continue to support the price of soybean meal to maintain its strength.

 

Source: China Feedtrade Net