Animal Feed Ingredient Market Information In China On November 14, 2023

Feed Ingredient Price List On November 14, 2023

Market Comments and Concern

Corn/Maize

Corn prices fluctuated higher on the 14th. The cooling domestic weather has made it easier to store new corn, profit margins for deep processing have rebounded, operating rates have improved, and feed companies' demand for corn has increased slightly, forming strong support for corn prices. In the second half of November, China's corn feed consumption will continue to grow, the demand for deep processing consumption will continue to grow, the supply of new season corn on the market will continue to grow, and the overall supply will remain sufficient. It is predicted that corn prices in producing areas will continue to fluctuate within the periodic bottom range that has been established at the end of October for most of November. There is no basis for large increases or decreases. The probability of the monthly average price continuing to fall month-on-month is high and the decline is still high because The monthly price base is too low. In December, as more corn moisture drops to the standard level, a large number of traders and reserve companies will enter the market to purchase, which will push up the price of corn to rebound from the bottom. Therefore, the monthly average price of corn in the production areas in December stopped falling and increased month-on-month. The probability gradually increases. In January before the Spring Festival, as more standard-moisture corn comes on the market and some growers have cash needs before the Spring Festival, the increase in market supply has the opportunity to suppress price declines again, and there is moderate stocking on the demand side in mid-to-late January before the Spring Festival. This behavior may have a short-term boost to prices, but it will not affect the general trend of monthly average prices falling month-on-month.

DDGS

The price of DDGS was strong on the 14th. Recently, the demand in the domestic breeding market has been average. Downstream terminals have returned to the rhythm of harvesting as needed. Companies purchase on demand. The wait-and-see mentality of the market has become stronger, and alcohol companies are more willing to support prices. In November, China's new season corn enters the centralized marketing stage, and the corn ethanol production industry also enters the peak production season. Theoretically, DDGS production and supply will continue to grow, and the overall supply is still sufficient. However, as ethanol prices weaken or limit again in the second half of October The enthusiasm of production companies to start up has increased, so the increase in DDGS production and supply is limited. On the demand side, the aquaculture peak season has ended, the rigid demand for DDGS will continue to weaken, and the support for prices will continue to weaken. Superimposed on the impact of the overall weak price range of related plant protein meal prices, we predict that the room for continued decline in DDGS prices during November will be limited. Generally speaking, based on the price at the end of October, the trend will mainly fluctuate within a narrow range, and there will be opportunities for a periodic rebound. However, the monthly average price will continue to fall significantly month-on-month because the price base at the beginning of the month is low.

Soybean Meal

Because the weather forecast showed that the weather in central and northern Brazil will still be dry and drier in the next few days, and the southern region will still have excessive rainfall, reducing production expectations, coupled with news that China's purchase of U.S. soybeans strongly supported the soybean market, CBOT soybean futures closed 2.8% higher. . The rebound of soybeans in the U.S. market has led to an increase in the cost of imported soybeans. In particular, the recent strong domestic purchasing demand and the weather speculation in South American production areas have caused the cost of imported soybeans to rise significantly. This has increased the willingness of factories to support the price of soybean meal and alleviated the recent continuous price cuts by oil plants. Under pressure, soybean meal rebounded following US soybeans. However, due to the increase in the number of soybeans arriving in Hong Kong and poor crushing profits, the continued losses in pig and broiler breeding have limited the willingness of feed breeding companies to stock up. Both soybean and soybean meal inventories in factories have increased, which will limit the increase in soybean meal prices. Continue to pay attention to the impact of the weather in South American production areas on the soybean market. Impact.