Animal Feed Ingredient Market Information In China On September 18, 2023

 

Feed Ingredient Price List On September 18, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2853.32	2872.89	-19.57	RMB/MT
Soybean Meal	4755	4775	-20	RMB/MT
Rapeseed Meal	3745	3750	-5	RMB/MT
Cotton Seed Meal	4325	4325	0	RMB/MT
DDGS	3019	3020	-1	RMB/MT
Peruvian Steam Dried Fish Meal	18000-18500	18000-18500	0	RMB/MT
Wheat	3034.42	3031.79	+2.63	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=729.0200RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices fell sharply on the 18th. Domestic early-maturing corn harvest progress is gradually accelerating, and the market circulation of corn has increased significantly. Traders harvest and go as they go, and lack confidence in building warehouses. Deep processing mostly purchases at low prices. 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 rate 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 transaction price of corn 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

 

The price of DDGS fell slightly on the 18th. The demand for aquaculture has weakened, the start-up rate of corn 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 fell as the U.S. soybean crushing volume in August was far lower than market expectations, there were rumors that China was buying Argentine soybeans and technical selling was active. Although the spot price of domestic soybean meal has fallen and the stocking of feed farming companies before the Double Festival has stimulated the soybean meal transaction to pick up, the weather speculation is coming to an end after the U.S. soybean harvest gradually begins. The supply pressure of the new U.S. soybean crop is gradually becoming more prominent and the South American soybean harvest is expected to be strong. Soybean futures prices continue to be under pressure. Under the purchasing strategy of buying up but not down, the recovery in the number of soybean meal transactions is still limited, and the price of soybean meal may continue to fluctuate and adjust the market.

 

Source: China Feedtrade Net