Animal Feed Ingredient Market Information In China On November 3, 2023

 

Feed Ingredient Price List On November 3, 2023

 

Variety	Today AVG. Price(RMB)	Yesterday AVG. Price(RMB)	Growth	Unit
Corn/Maize	2656.26	2652.05	+4.21	RMB/MT
Soybean Meal	4255	4215	+40	RMB/MT
Rapeseed Meal	3190	3140	+50	RMB/MT
Cotton Seed Meal	3375	3425	-50	RMB/MT
DDGS	2539	2537.5	+1.5	RMB/MT
Peruvian Steam Dried Fish Meal	17500-18100	17500-18100	0	RMB/MT
Wheat	3031.74	3032.89	-1.15	RMB/MT
Data Source: China Feedtrade Net Exchange Rate: 100USD=731.5800RMB

 

 

 

Market Comments and Concern

 

Corn/Maize

 

Corn prices adjusted strongly on the 3rd. As the weather in the country's main production areas turns cooler, it is beneficial for farmers to store corn. In addition, rain and snow weather affect the market volume. There is a periodic supply shortage in some areas, and the purchase price is slightly stronger. 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

 

The price of DDGS fluctuated slightly on the 3rd. 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 overall weak DDGS spot prices is high for most of November, but the decline will gradually narrow.

 

Soybean Meal

 

CBOT soybean futures rose for the third consecutive day as China's soybean imports are expected to hit a record high and dry weather in northern and central parts of Brazil and excessive rain in the south still worries the market. The rebound in soybeans in the U.S. has led to an increase in the cost of imported soybeans. The decline in domestic soybean meal stocks and the delay in the arrival of soybeans in Hong Kong have led to short-term shutdowns in some factories. In addition, as the temperature gradually drops at this stage, feed farming companies will gradually face seasonal soybean meal demand throughout the year. During the peak season, under the buy-and-use procurement strategy, there is less inventory at the breeding end. After the price rebounds, factories are more willing to support prices. It is expected that soybean meal prices will usher in a short-term slight rebound in the near future.

 

Source: China Feedtrade Net