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

 

Feed Ingredient Price List On October 12, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2741.68	2749.47	-7.79	RMB/MT
Soybean Meal	4245	4315	-70	RMB/MT
Rapeseed Meal	3250	3330	-80	RMB/MT
Cotton Seed Meal	3825	3825	0	RMB/MT
DDGS	2703	2703	0	RMB/MT
Peruvian Steam Dried Fish Meal	17900-18500	17900-18500	0	RMB/MT
Wheat	3046.79	3040.53	+6.26	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=729.9600RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices continued to fall on the 12th. The quantity of new season corn in the main domestic production areas has begun to increase. The moisture content of the new grain is slightly higher and the toxins are not yet stable. Feed companies are not very enthusiastic about signing orders for new grain. It is difficult to increase the terminal demand. The market purchase and sales are not yet active. The spot price of corn is short-term. It is easy to fall but difficult to rise. Under the pressure of new crop supply, aged corn holders have become more willing to ship and the shipment speed has accelerated. Therefore, overall the corn supply in October is still sufficient. It is predicted that corn transaction prices will generally be weak and fluctuate most of the time in October. The decline rate will be slow in the first half of the month, and the decline will accelerate and expand in the second half of the month. The probability of the monthly average price of corn in the main producing areas continuing to fall is obviously high. The probability that the monthly average price in production and marketing areas across the country has stopped rising and turned falling month-on-month is significantly higher.

 

 

DDGS

 

DDGS prices remained stable and weakened on the 12th. As the off-season for end-use aquaculture consumption approaches, the demand for DDGS weakens. Coupled with the decline in raw corn prices, cost support weakens and supply becomes looser. Alcohol companies continue to lower DDGS prices. In October, the operating rate of China's corn ethanol manufacturers will continue to remain high, and DDGS production and supply will continue to grow and supply will further improve. The peak season of aquaculture on the demand side has come to an end. The total consumption of DDGS in October has stopped increasing and started to decline. The price of other related plant protein meal raw materials continues to be weak. The price of raw material corn is also simultaneously weak, which has put obvious pressure on the price trend of DDGS. Therefore, we predict that there is a high chance that DDGS spot prices will be generally weak most of the time in October, and that the monthly average price will continue to fall month-on-month.

 

Soybean Meal

 

Before the release of the monthly supply and demand report, the market expected that the US Department of Agriculture would lower its soybean production forecast. However, news showed that nearly half of the US soybean harvest has been completed, exceeding market expectations and faster than the historical average. CBOT soybean futures prices continued to decline. With the seasonal soybean supply pressure in the United States becoming more prominent and the rapid soybean planting progress in South America, the rebound of U.S. soybeans has been weak. As U.S. soybeans have reached new lows, the cost of imported soybeans continues to decline. Domestic soybean meal supply is sufficient. In addition, feed breeding companies are bearish on the future market and are not in a hurry to stock up. Soybean meal spot transactions are deserted, and many feed breeding companies purchase forward low prices as needed. contract. At present, oil mills are unable to support the price of soybean meal and continue to maintain a downward trend, waiting for the release of the monthly supply and demand report to guide the market.

 

Source: China Feedtrade Net