Animal Feed Ingredient Market Information In China On August 25, 2023

 

Feed Ingredient Price List On August 25, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2895.21	2891.63	+3.58	RMB/MT
Soybean Meal	4970	4935	+35	RMB/MT
Rapeseed Meal	3960	3945	+15	RMB/MT
Cotton Seed Meal	4440	4400	+40	RMB/MT
DDGS	3043	3038	+5	RMB/MT
Peruvian Steam Dried Fish Meal	18800-19000	18800-19000	0	RMB/MT
Wheat	2982.42	2981.16	+1.26	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=728.6300RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 25th, corn prices continued to rise. There is not much surplus at the local grassroots level, the supply of spring corn is limited, the inflow of grain from the Northeast has decreased, the scale of the North China market is still at an ultra-low level, and some processing companies continue to increase their purchase prices. 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 25th, the price of DDGS rose steadily. At present, the demand for terminal feed has improved, and the market for soybean meal substitutes has risen sharply. Domestic ethanol factories are mainly raising prices, and the DDGS market continues to rise. 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

 

On the third day of the crop inspection in the Midwest of the United States, the inspectors found that the crop situation has improved compared with last year, but the hot and drier weather in the central region will affect the yield of soybean crops that are still in the growing stage, and the superimposed soybean sales exceed market expectations. CBOT soybeans Futures continued to rise. The high temperature weather in soybean producing areas in the Midwest of the United States has caused market concerns. The number of domestic soybean arrivals in Hong Kong has declined and some oil plants will have shutdown plans. Supporting the soybean meal spot market to maintain a defensive state, it is expected that the market will remain volatile and strong.

 

Source: China Feedtrade Net