Animal Feed Ingredient Market Information In China On September 12, 2023

 

Feed Ingredient Price List On September 12, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2875.53	2880.89	-5.36	RMB/MT
Soybean Meal	4845	4855	-10	RMB/MT
Rapeseed Meal	3845	3845	0	RMB/MT
Cotton Seed Meal	4325	4375	-50	RMB/MT
DDGS	3040	3043.5	-3.5	RMB/MT
Peruvian Steam Dried Fish Meal	18000-18500	18200-18800	-300	RMB/MT
Wheat	3027.16	3025.68	+1.48	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=729.4300RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices were weak and volatile on the 12th. The amount of new corn harvested in the production areas of North China has increased. Traders are actively clearing old grain inventories and the market is actively moving goods. In addition, grains from the Northeast continue to flow in. Terminal companies are less interested in purchasing high-priced old grains, and most of them are cautiously replenishing their stocks. 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

 

On the 12th, the price of DDGS remained stable with a slight decrease. 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. In September, the operating rate of Chinese corn starch manufacturers recovered moderately, and DDGS production and supply continued to grow and supply continued to improve. However, the price of raw material corn continues to remain high. Although the price of plant protein meal has retreated, it continues to remain high overall. Although the support for DDGS prices has weakened, it is still generally strong. It is predicted that in the first half of September, DDGS prices are more likely to continue to maintain a steady to strong trend, and the probability of a correction in the second half of the month will increase.

 

Soybean Meal

 

CBOT soybean futures rose slightly due to active technical buying and market expectations that the recent heat wave and dry weather in the Midwest may have a greater impact on yields than expected, supporting soybean prices. However, the year-on-year decline in soybean export inspections limited their gains. CBOT soybean futures rose slightly. Before the USDA report, the market generally expected that the U.S. soybean yield and output would be reduced. After soybeans reached a high level, import costs supported soybean meal prices. However, the volume of imported soybeans arriving at the port was higher than expected and the spot price of soybean meal was relatively high, which reduced the market's willingness to accept it. Feed breeding companies mainly focused on early-stage contracts. After the soybean meal continued to be light, the market's motivation to chase the increase weakened, and prices fell under pressure. It is expected that The market continues to fluctuate and adjust, and we are waiting for the September monthly supply and demand report to be released tonight to guide the market.

 

Source: China Feedtrade Net