Animal Feed Ingredient Market Information In China On August 22, 2023

 

Feed Ingredient Price List On August 22, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2878.42	2877.63	+0.79	RMB/MT
Soybean Meal	4970	4980	-10	RMB/MT
Rapeseed Meal	4050	4080	-30	RMB/MT
Cotton Seed Meal	4375	4375	0	RMB/MT
DDGS	2991.5	2961.5	+30	RMB/MT
Peruvian Steam Dried Fish Meal	18800-19000	18800-19000	0	RMB/MT
Wheat	2965.47	2952.95	+12.52	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=728.7100RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 22nd, the price of corn fluctuated and rebounded. Up to now, three feed rice auctions have been held in China, with a total of 5.32 million tons sold, including 4.06 million tons in Heilongjiang. In last week's overdue paddy directional auction, Heilongjiang basically sold at the reserve price, and some failed to sell. From the second half of August to the first half of September, China's aged corn inventory will continue to decline, and the demand for breeding and feed production will continue to grow. The overall supply of aged corn will continue to be in a period of shortage, and the supply capacity will continue to decline. However, the market volume of early spring corn continues to grow, and the supply of alternative raw materials is also obviously sufficient. The new season corn market is approaching. Traders in the area have sufficient corn inventories, and the support for rising corn prices is gradually weakening. It is predicted that during the period from late August to the first half of September, the probability of a weak correction in corn prices in production areas is high. However, due to the continued rise in the prices of wheat, malted malt and low-quality wheat, the decline in corn prices is limited, and there is a high possibility of a slow decline in the near future, and there is no basis for a sharp decline. However, September is still a critical period for corn growth, and the impact of the weather is still full of unknowns and uncertainties. Pay attention to the weather conditions in the northern region.

 

DDGS

 

On the 22nd, the price of DDGS rose steadily. At present, the demand for terminal feed is improving, and the market for soybean meal substitutes is soaring. Corn alcohol companies are mainly raising prices, and the DDGS market continues to be strong. From late August to September, 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 remain low until late September, and the tight production and supply situation remains unchanged. At the same time, the general price rise of vegetable protein meal raw materials has also boosted the price of DDGS. On the other hand, the peak season of aquaculture in northern China is gradually entering the second half, and the drop in demand for DDGS is also negative for its price. During the period from late August to the first half of September, it is highly likely that the trading prices of DGS products will be generally stable and slightly strong.

 

Soybean Meal

 

CBOT soybean futures hit their highest in more than three weeks as hot, dry weather in the U.S. Midwest heightened concerns about crop stress. After the soybean weather hype restarted in the U.S. market, the market worried about the risk of production decline intensified, driving up the cost of imported soybeans, coupled with the decline in the arrival of imported soybeans to Hong Kong, the strong demand, and the depreciation of the renminbi, all of which increased the willingness of factories to support meal, and the spot price of soybean meal in many places rebounded rapidly. Some areas have broken through the 5,000 yuan / ton mark, and will continue to maintain a high level of operation.

 

Source: China Feedtrade Net