Animal Feed Ingredient Market Information In China On September 11, 2023

 

Feed Ingredient Price List On September 11, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2880.89	2898.11	-17.22	RMB/MT
Soybean Meal	4850	4830	+20	RMB/MT
Rapeseed Meal	3845	3845	0	RMB/MT
Cotton Seed Meal	4375	4375	0	RMB/MT
DDGS	3043.5	3043.5	0	RMB/MT
Peruvian Steam Dried Fish Meal	18200-18800	18200-18800	0	RMB/MT
Wheat	3025.68	3027.05	-1.37	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=727.8300RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices continued to fall on the 11th. Domestic new season corns are coming on the market one after another. Under the alternation between new and old corn, the number of grain sources circulating in the market has increased, and corporate prices have also gradually declined. In late September, corn in the Northeast region gradually entered the harvest period, but the moisture content of new season corn is relatively high, and the main feed corn is still aged corn. Therefore, in general, the supply of corn is still tight most of the time in September. However, as the supply pressure of new crops gradually becomes more prominent, the price increase speed and amplitude of aged corn have gradually slowed down and narrowed. As the time for the new season corn to be launched is approaching, grain holders are more willing to ship, and the trading volume of corn is increasing. However, new purchasing demands on the demand side are becoming more cautious. Mainly purchasing for rigid needs is the mainstream mode of the market. Therefore, theoretically, the price of corn in September will be bullish. 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, as the time for the new season corn to be released approaches, the pressure on new crops becomes more prominent. The average corn trading price is more likely to turn from stable to downward, and the chance of the monthly average price continuing to rise month-on-month is still high.

 

DDGS

 

DDGS prices were stable but weak on the 11th. Since September, the demand for aquaculture has weakened, the start-up rate of rice ethanol production enterprises has increased, the market supply has been loose, and the DDGS market has weakened and adjusted. The slowdown in the growth of corn raw materials, 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, while 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 have a high chance of continuing to rise month-on-month.

 

Soybean Meal

 

Although the market generally expects that the September supply and demand report will lower U.S. soybean yields and production, the general increase in new crop soybean production expectations in South America has limited market gains, and the CBOT soybean futures market has rebounded slightly. The number of soybeans arriving in Hong Kong has recently declined compared with the peak period, but is still higher than market expectations. Factories have maintained a good operating rate with good crushing profits, and the supply of soybean meal is relatively sufficient. In addition, the current high soybean meal prices have caused feed farming companies to continue to purchase smaller amounts of soybean meal, mainly to execute early contracts. Agents took the initiative to cut prices out of warehouses, dragging down factory soybean meal quotations to appear weak. We continue to wait for guidance on the market after the monthly report is released.

 

Source: China Feedtrade Net