Animal Feed Ingredient Market Information In China On November 2, 2023

 

Feed Ingredient Price List On November 2, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2652.05	2652.58	-0.53	RMB/MT
Soybean Meal	4215	4190	+25	RMB/MT
Rapeseed Meal	3140	3125	+15	RMB/MT
Cotton Seed Meal	3425	3425	0	RMB/MT
DDGS	2537.5	2537.5	0	RMB/MT
Peruvian Steam Dried Fish Meal	17500-18100	17500-18100	0	RMB/MT
Wheat	3032.89	3032.95	-0.06	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=731.8800RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices were stable but weak on the 2nd. Grassroots growers in the country's main production areas are increasingly reluctant to sell at low prices, and trading entities are cautious in purchasing. As the supply of new grains has cooled down, the extent of price reductions by processing companies has narrowed, and the number of companies lowering prices has significantly decreased. The main production areas in the Northeast are nearing the end of harvest, and the volume of new season corn on the market continues to grow. The supply pressure of new crops continues to be highlighted. The temperature in the Northeast production areas is still generally high, making it more difficult to store corn, and it is more difficult for growers to store grain to wait for the increase. It is predicted that the overall trend of corn prices will be weak in most of November, and there will be opportunities for short-term fluctuations to be stronger. In December, affected by the increased purchase of corn by reserve companies, the probability of prices turning from falling to rising will increase.

 

DDGS

 

DDGS prices remained weak and stable on the 2nd. Recently, the shipment situation of DDGS 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. And alcohol has gradually entered the peak consumption season. Some alcohol plants may have plans to start up in the future. It is expected that the spot of DDGS Supply may increase, which may be negative for DDGS prices to a certain extent. In November, as the supply of new season corn raw materials improves and prices fall back, the start-up rate of corn ethanol manufacturers will continue to remain high. The production and supply of DDGS will continue to maintain high temperatures and the overall supply will remain sufficient. The peak season of aquaculture on the demand side has come to an end and the demand is weakening. However, livestock and poultry breeding consumption will continue to grow. Due to the overall sufficient supply and the overall weak price of other related plant protein meal raw materials, coupled with the simultaneous weakening of raw corn prices, there will continue to be significant pressure on the price trend of DDGS. Therefore, we predict that the probability of DDGS spot prices being generally weak most of the time in November is high, but the decline will gradually narrow.

 

Soybean Meal

 

Due to good demand for soybean processing and crushing in the United States and technical buying support, but better production prospects after improved weather in South America limited the increase in soybean prices, CBOT soybean futures rose slightly, showing a range-bound oscillation trend. Domestically, due to the decline in crushing volume and the shortage of soybeans in some factories, they had to shut down operations, which eventually led to a decline in inventories. In addition, the US soybean futures price fluctuated and was supported by strong operations. The decline in soybean meal spot prices slowed down, and factories and traders wanted to take advantage of the US market. The support brought by soybeans has increased the quotation of soybean meal, but downstream demand continues to be light, and soybean meal cannot stop falling and rebound, or may continue to adjust slightly.

 

Source: China Feedtrade Net