Animal Feed Ingredient Market Information In China On October 25, 2023

 

Feed Ingredient Price List On October 25, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2681.74	2682.11	-0.37	RMB/MT
Soybean Meal	4255	4215	+40	RMB/MT
Rapeseed Meal	3260	3200	+60	RMB/MT
Cotton Seed Meal	3610	3640	-30	RMB/MT
DDGS	2549	2553	-4	RMB/MT
Peruvian Steam Dried Fish Meal	17600-18300	17600-18300	0	RMB/MT
Wheat	3035.59	3035.58	+0.01	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=730.5400RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices fluctuated weakly on the 25th. New season corn is being purchased in the main production areas. As the temperature gradually drops, the difficulty of storing new grain will be reduced. The sentiment of grassroots farmers to sell grain at low prices has weakened. Some grain holdings are equivalent, and the bottom support for corn prices has become stronger. The supply pressure of new crops continues to be highlighted. The high temperatures in the northeastern production areas make it more difficult to store corn, and growers are highly motivated to sell grain. It is predicted that the overall corn transaction price in late October will continue to be weak and volatile. The monthly average price of corn in the main production areas in October is more likely to continue to fall month-on-month. The chance that the monthly average price of corn in production and marketing areas across the country will stop rising and then fall month-on-month is significantly higher. . Looking further ahead, it is predicted that the overall trend of corn prices will remain weak for most of November. In December, affected by the increased purchase of corn by reserve companies, the probability of prices turning from falling to rising increases.

 

DDGS

 

The price of DDGS was weak on the 25th. After the recent price reduction of DDGS, the shipment situation of some traders has improved slightly, and the inventory level of DDGS has relatively slowed down. However, downstream terminals still have a wait-and-see mentality and mostly maintain the purchase of urgent needs. In October, alcohol gradually enters the peak consumption season, and some alcohol factories There may be plans to start production in the future, and it is expected that the spot supply of DDGS may increase, which may be negative for the price of DDGS to a certain extent. From late October to November, as the supply of new season corn raw materials improves and prices fall, the operating rate of corn ethanol manufacturers will continue to remain high, and DDGS production and supply will continue to grow and supply will continue to improve. On the demand side, the aquaculture peak season has come to an end and demand has just weakened, but livestock and poultry breeding consumption will continue to grow. Due to the overall sufficient supply and the continued weakness in the prices of other related plant protein meal raw materials, the price of raw materials corn has also been simultaneously weak, creating significant pressure on the price trend of DDGS. Therefore, we predict that the probability of DDGS spot prices being generally weak will be high from late October to most of November.

 

Soybean Meal

 

Soybean meal surged to a seven-month high as China signed a letter of intent to purchase U.S. agricultural products. Rainfall in the U.S. Midwest may slow down soybean harvesting, supporting a slight rise in CBOT soybean futures. Continuous declines in soybeans in the U.S. weakened the market's bullish sentiment, and soybean meal inventories rose after the crushing volume increased. However, pig and broiler breeding continued to suffer losses, causing feed breeding companies to be cautious in stocking needs. Soybean meal transactions remained light, resulting in lack of motivation to raise prices. Factories seized on the rebound in the U.S. market. The soybean meal spot market is expected to return to the downward channel in the later period.

 

Source: China Feedtrade Net