Animal Feed Ingredient Market Information In China On August 31, 2023

 

Feed Ingredient Price List On August 31, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2905.74	2904.42	+1.32	RMB/MT
Soybean Meal	4990	4990	0	RMB/MT
Rapeseed Meal	3990	3960	+30	RMB/MT
Cotton Seed Meal	4490	4465	+25	RMB/MT
DDGS	3044	3044	0	RMB/MT
Peruvian Steam Dried Fish Meal	18700-18800	18700-18800	0	RMB/MT
Wheat	3013.05	300653	+6.52	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=728.8000RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices continued to adjust on the 31st. Domestic new season spring corn will be launched one after another, and imports to Hong Kong will increase. The low market supply is difficult to sustain. Feeding companies mainly focus on alternative grains, and deep-processing companies have high inventory of finished products and low profits. Although there is a rigid demand for restocking, Procurement is limited. 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 31st. 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

 

Although private exporters' soybean export sales business was active, soybean futures once rose, but the profit-taking and selling of long positions forced soybean prices to fall, and CBOT soybean futures fell for the second consecutive trading day. The better-than-expected good rate of soybeans in the United States alleviated market concerns about the decline in soybean production. In addition, the weather hype is coming to an end, and the impact on subsequent production will gradually decrease after the follow-up production becomes clear. The price of soybean meal is at a relatively high level at this stage, but feed farming enterprises purchased a certain number of basis contracts before, and the terminal already has a certain amount of inventory after the limited delivery in the early stage. The strong operation of soybean oil made the factories less willing to continue to increase the price of soybean meal, and the price showed a slight correction, but the decline is expected to be limited under the support of high costs and good demand prospects.

 

Source: China Feedtrade Net