Animal Feed Ingredient Market Information In China On September 8, 2023

 

Feed Ingredient Price List On September 8, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2898.11	2899.79	-1.68	RMB/MT
Soybean Meal	4830	4905	-75	RMB/MT
Rapeseed Meal	3845	3925	-80	RMB/MT
Cotton Seed Meal	4375	4375	0	RMB/MT
DDGS	3043.5	3046.5	-3	RMB/MT
Peruvian Steam Dried Fish Meal	18200-18800	18200-18800	0	RMB/MT
Wheat	3027.05	3028.63	-1.58	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=734.9100RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices adjusted weakly on the 8th. Domestic new corn in North China has begun to be listed, and some new corn in Northeast China has also begun to be harvested. The price difference between new and old grains is obviously smaller than in previous years. It is expected that the price of new grains will show a trend of opening up. In late September, the corn in Northeast China gradually entered the harvesting period, but the water content of the new season corn was relatively high, and the forage corn was still dominated by aged corn. Therefore, in general, the supply of corn is still tight in most of September, but due to the gradual increase in supply pressure of new crops, the price increase of aged corn has gradually slowed down and narrowed. Superimposed new season corn is coming to market, the willingness of grain holders to ship has increased, and the trading volume of corn on the market has increased, while the demand for new purchases on the demand side tends to be cautious. Just-needed purchases are the mainstream market model, so in theory, corn prices are bullish in September. The negative factors are mixed. It is predicted that during the first half of September, the average transaction price of the corn market will be generally stable and slightly rise or fall, with a slightly stronger trend. In the second half of the month, the new crop corn market is approaching, and the pressure of new crops is prominent. The average transaction price of corn is more likely to drop from stability to decline, and the probability of the monthly average price continuing to rise month-on-month is still high.

 

DDGS

 

The price of DDGS fell slightly on the 8th. The operating rate of corn alcohol production enterprises will continue to recover, and the production and supply of DDGS will continue to grow. The tight supply situation is expected to improve moderately, but the overall situation is still slightly tight. The slowdown in the growth of raw material corn, the weak growth of plant protein meal raw materials and the moderate correction, and the gradual end of the peak season of aquaculture demand have put negative pressure on DDGS prices. It is predicted that most of the time in September, DDGS prices in most regions will be generally stable, and some market prices will be weak. The average transaction price during the month will be generally stable at first and then weak, and the monthly average price will continue to rise month-on-month.

 

Soybean Meal

 

Although the 5% decline in the good-to-good rate of soybeans in the United States exceeded expectations, the weather forecast shows that there may be about 0.25 inches of precipitation in soybean-producing areas from Friday to next Monday. In addition, soybean planting in South America is imminent. The market generally believes that soybean production in South America will increase under the influence of El Niño, CBOT Soybean futures fell. The cost of imported soybeans fell after the fall in the U.S. soybean market. Feed farming companies recently focused on implementing early-stage contracts. After the market was light, the inventory stopped falling and rebounded. In addition, although the number of soybeans arriving in Hong Kong in August declined, it exceeded market expectations and did not support the factory. With the willingness to raise prices, soybean meal is expected to follow the weak and volatile market of US soybeans.

 

Source: China Feedtrade Net