Animal Feed Ingredient Market Information In China On October 23, 2023

 

Feed Ingredient Price List On October 23, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2694.11	2700.26	-6.15	RMB/MT
Soybean Meal	4280	4325	-45	RMB/MT
Rapeseed Meal	3215	3260	-45	RMB/MT
Cotton Seed Meal	3675	3675	0	RMB/MT
DDGS	2592	2592	0	RMB/MT
Peruvian Steam Dried Fish Meal	17900-18500	17900-18500	0	RMB/MT
Wheat	3035.32	3046.8	-11.48	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=731.7500RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices fell on the 23rd. At present, the temperature in the main domestic production areas has not dropped significantly, and the sales pressure of tide grain is obvious. The expectation of high harvest has added pressure on grain sales. However, the demand for warehouse construction by trading entities has been delayed. In the short term, the spot market is still in a stage of obvious oversupply. Under pressure from the supply of new crops, 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

 

The price of DDGS was slightly stable on the 23rd. As the off-season for end-use aquaculture consumption approaches, the demand for DDGS has weakened. Coupled with the decline in raw corn prices, cost support has weakened, supply has become looser, and alcohol companies have become less willing to raise 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

 

CBOT soybean futures fell and ended a rising trend in the past four trading days as the market worried that Brazil's dry weather would disrupt river grain transportation and cause soybean planting to significantly slow down, but the chance of rainfall in the dry areas of northern Brazil would increase. The drop in soybean futures prices in the U.S. has driven down the cost of imported soybeans and weakened factories' willingness to raise prices for soybean meal. In addition, relevant domestic shipping schedules indicate that the number of soybeans arriving in Hong Kong will increase in November, and feed farming companies are purchasing after losses in pig and broiler farming. The pace has slowed down, and soybean meal transactions have slowed down again. It is expected that soybean meal will follow the U.S. soybean and show a weak decline.

 

Source: China Feedtrade Net