Animal Feed Ingredient Market Information In China On August 23, 2023

 

Feed Ingredient Price List On August 23, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2879.89	2878.42	+1.47	RMB/MT
Soybean Meal	4970	5000	-30	RMB/MT
Rapeseed Meal	3950	4010	-60	RMB/MT
Cotton Seed Meal	4400	4375	+25	RMB/MT
DDGS	3038	2991.5	+46.5	RMB/MT
Peruvian Steam Dried Fish Meal	18800-19000	18800-19000	0	RMB/MT
Wheat	2976.63	2965.47	+11.16	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=728.4900RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 23rd, corn prices were slightly stronger. At present, domestic spring corn has also begun to be listed one after another. Among them, the spring corn in Hubei, Sichuan and other places has begun to increase, and some early-maturing spring corn in Shandong, Henan and other places are also sporadically on the market. There is a significant increase. 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 23rd, the price of DDGS was obviously stronger. 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 ended lower after a survey by Professional Farmers showed soybeans in Ohio and South Dakota withstood hot, dry weather for much of the summer, with soybean pod numbers above last year and the three-year average. The stable growth rate of soybeans in the U.S. market has eased the market's concerns about soybean production, and the weather hype has shown signs of cooling down. In particular, the fall of soybeans in the U.S. market has driven down the cost of soybean meal and imported soybeans. Soybean inventories dropped sharply after domestic imports of soybeans to Hong Kong gradually declined but the crushing volume remained high. However, the high price limited the market's willingness to accept soybean meal. After the limited willingness to continue to buy goods at high prices, the inventory decline slowed down. It is expected that the depreciation of the RMB And under the prospect of good demand, soybean meal is expected to maintain a high and volatile market.

 

Source: China Feedtrade Net