Animal Feed Ingredient Market Information In China On September 4, 2023

 

Feed Ingredient Price List On September 4, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2896.74	2902.26	-5.52	RMB/MT
Soybean Meal	4905	4970	-65	RMB/MT
Rapeseed Meal	3940	3980	-40	RMB/MT
Cotton Seed Meal	4425	4480	-55	RMB/MT
DDGS	3045.5	3044	+1.5	RMB/MT
Peruvian Steam Dried Fish Meal	18700-18800	18700-18800	0	RMB/MT
Wheat	3035.05	3020.11	+14.94	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=726.4500RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices fluctuated lower on the 4th. Due to the periodic increase in grain supply in China, some companies in North China have shown price reductions. Due to the small total amount of spring corn, the remaining grain at the grassroots level has basically been exhausted, and the corn supply gap still exists. China's aged corn stocks will continue to decline in September. There is no obvious sign of increase in the quantity of imported corn arriving at the port. The supply of spring corn is limited. The demand for corn for breeding will continue to grow. The operating rate of deep processing enterprises has rebounded. The demand for corn has increased, and traders' stocks have continued to increase. The sentiment of reluctance to sell is still high. The overall supply of corn in September is still moderately tight, but the large investment in alternative raw materials has moderately eased the tight supply of corn, and the continued rise in wheat and malt prices has also provided support for corn prices. It is predicted that corn prices are likely to maintain a strong trend for most of September. In the second half of September, as the new season corn harvest time approaches in the main producing areas of Northeast China, the potential impact of new crop pressure will gradually appear, and trade The reluctance of merchants to sell has weakened and the willingness to ship goods is expected to gradually increase, and there is a risk of a stagflation correction in corn prices.

 

DDGS

 

On the 4th, DDGS prices were stable but strong. 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 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 material corn continues to rise, the price of plant protein meal continues to rise overall, and the main energy and protein raw materials continue to rise, forming obvious support for DDGS prices. It is more likely that the price of DDGS will continue to be strong in September.

 

Soybean Meal

 

CBOT soybean futures all rose except for September, which closed lower due to market concerns that dry weather would damage crops during the critical growth stage of soybeans, coupled with short-covering support before the long weekend. As the U.S. soybean harvest approaches, soybean production becomes increasingly clear, and market speculation about production cuts has cooled down. In addition, the strengthening of the RMB exchange rate against the U.S. dollar will help reduce the cost of U.S. soybean imports. The high domestic soybean meal prices have reduced the market demand for soybean meal stockings. In particular, many feed breeding companies have purchased a lot of basis contracts in the early stage and need to withdraw them when they expire. The number of soybean meal transactions has gradually become lighter, and the strong operation of soybean oil has reduced the demand for soybean meal by oil plants. willingness to raise prices, the spot market has declined slightly. However, the current high level of soybeans in the U.S. and the gradual increase in demand from the downstream breeding end have limited the decline in the soybean meal market, which has become increasingly tight in supply.

 

Source: China Feedtrade Net