Animal Feed Ingredient Market Information In China On December 15, 2023

Feed Ingredient Price List On December 15, 2023

Market Comments and Concern

Corn/Maize

Corn prices adjusted weakly in a narrow range on the 15th. The main domestic production areas have encountered large-scale cooling and snowfall weather, which has blocked transportation and made it difficult to circulate grain sources. The arrival volume of some areas has dropped sharply, and the purchase prices of some enterprises have increased slightly. Most traders have a wait-and-see attitude, and traders have low enthusiasm for purchasing. Market purchases Sales volume remains low. In December, China's corn feed consumption will stop increasing and then decline. The demand for deep processing consumption will continue to grow. The supply of new season corn on the market will continue to grow. The overall supply is still sufficient. 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. Theoretically, the monthly average price of corn in the production areas in December will stop falling and rise month-on-month. The probability will increase, but due to the continued decline in corn prices in late November, the price base in early December has dropped to a lower level. Therefore, even if there is a periodic rise in prices in December, due to the limited increase, its monthly The probability that the average price will continue to fall month-on-month is still high. Our previous prediction that the monthly average price will stop falling and increase month-on-month may be in vain. 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

DDGS prices were weak and stable on the 15th. Recently, the operating rate of domestic alcohol companies has been at a periodic high, and the spot supply of DDGS is relatively abundant. However, the market demand from the breeding market is insufficient, and the demand for some feeds has decreased. The downstream wait-and-see mood is strong, and the enthusiasm for purchasing is not high, resulting in DDGS transaction situation is not ideal. The DDGS inventory of some alcohol companies has increased, and the high inventory of some companies still needs to be digested. In December, the corn ethanol production industry continued to be in the peak production season. Theoretically, the production and supply of DDGS is still high, and the overall supply is still sufficient. 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 be weak. Coupled with the pressure that the overall price of soybean, vegetable and cotton meal continues to be weak and falling, we predict that the overall price of DDGS will be more likely to be weak in December.

Soybean Meal

CBOT soybean prices rose due to strong demand for U.S. soybean export sales and rumors that China will purchase several more shipments of U.S. soybeans, supported by a sharp decline in the U.S. dollar exchange rate. Since the customs clearance of domestic soybeans arriving in Hong Kong has returned to normal, the number of soybeans arriving in Hong Kong is relatively large. However, feed breeding companies are bearish on the market outlook due to the current poor breeding efficiency. After the limited quantity of soybean meal is received, the supply will continue to remain loose, and the price of soybean meal has increased. In addition, South American soybean production is expected to increase for the time being, and the price of soybean meal will remain volatile and adjust after the spot demand for soybean meal is not strong.