Animal Feed Ingredient Market Information In China On August 30, 2023

 

Feed Ingredient Price List On August 30, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2904.42	2903.63	+0.79	RMB/MT
Soybean Meal	4990	5025	-35	RMB/MT
Rapeseed Meal	3960	3980	-20	RMB/MT
Cotton Seed Meal	4465	4465	0	RMB/MT
DDGS	3044	3044	0	RMB/MT
Peruvian Steam Dried Fish Meal	18700-18800	18700-18800	0	RMB/MT
Wheat	3006.53	3000.32	+6.21	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=729.0300RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

On the 30th, the price of corn fluctuated strongly. According to data from the National Grain and Oil Information Center, 1.54 million tons of imported corn is expected to arrive at Guangdong ports from mid-August to the end of September, all of which is corn produced in Brazil. Due to port transportation problems, it is expected that a large amount of imported corn will arrive at the port after the end of September. In September, China's aged corn inventory will continue to decline, and there is no obvious increase in the number of imported corn arriving in Hong Kong. The supply of spring corn is limited, and the corn used for breeding demand will continue to grow. Declining reluctance to sell sentiment is still high. In September, the overall supply of corn is still moderately tight, but a large amount of alternative raw materials has moderately eased the tight supply of corn, and the continued rise in wheat and malt prices also supports corn prices. It is predicted that most of the time in September, corn prices will maintain a strong trend. In the second half of September, as the harvest time of new season corn in the main Northeast producing areas approaches, the potential impact of new crop pressure is gradually reflected. Trade Businesses are reluctant to sell, and their willingness to ship goods is expected to gradually increase, and corn prices are at risk of stagflation and correction.

 

DDGS

 

DDGS prices firmed on the 30th. At present, the demand for terminal feed is improving, the price of substitute soybean meal has surged, domestic alcohol factories are mainly raising prices, and the DDGS market continues to run at a high level. In September, the operating rate of Chinese corn starch production enterprises is expected to continue to recover, DDGS production and supply will continue to grow, and supply will gradually improve. However, the price of raw corn continued to rise, the price of vegetable protein meal continued to rise in general, and the main energy and protein raw materials continued to rise, which formed a significant support for the price of DDGS. It is more likely that the price of DDGS will continue to be strong in September.

 

Soybean Meal

 

CBOT soybean futures fell as the latest weekly crop growth report released by the US Department of Agriculture showed that the soybean excellent rate was 58%, a decrease of one percentage point from a week ago, but the decline was lower than the market estimate of 3% before the report was released. The good-to-good rate of US soybeans was better than expected to ease the market's concerns about the decline in soybean production. However, the speculation window for US soybean weather gradually narrowed, and the impact continued to shrink after the later production gradually became clear. In China, although the recent high price of soybean meal has reduced the willingness of the market to accept it, and the sharp decline in the transaction volume of soybean meal in the factory has weakened the motivation of the oil factory to raise prices, but the number of vehicles picking up goods outside the factory is still relatively large. In addition, the number of soybeans arriving in Hong Kong in the later period is on a downward trend, and the demand for soybean meal from feed farming companies is on the rise. The tight supply is expected to continue to support the price of soybean meal to maintain a high and volatile market.

 

Source: China Feedtrade Net