Animal Feed Ingredient Market Information In China On January 16, 2024

Feed Ingredient Price List On January 16, 2024

Market Comments and Concern

Corn/Maize

Corn prices fell on the 16th. At present, there is an increase in domestic policy grain purchase news. Among them, Inner Mongolia's 14% moisture dry grain is listed at 2,420 yuan/ton, which has supported the spot market price. However, with less than a month until the Spring Festival, there is still plenty of surplus grain at the grassroots level, and it is expected that the pressure on the spot side will be limited. In the first half of January, corn prices in producing areas will continue to decline. In the second half of January, as the second half approaches, due to the limited growth in stocking demand before the Spring Festival, the probability of some markets abandoning weakness and turning into strength will increase moderately. At the same time, due to the impact of the second half of January The weather conditions are uncertain. If extreme weather occurs again in the production area and affects the sale and transportation of corn, there will also be opportunities for corn in the sales area to rise. Therefore, judging from the daily trading average price trend, the first half of the month was weak and the second half may have opportunities to rise again, while the probability of the monthly average price in January continuing to fall month-on-month is still very high.

DDGS

DDGS prices fell partially on the 16th. Domestic terminal market demand is average, downstream wait-and-see sentiment is strong, alcohol companies' equipment operations are relatively stable, and DDGS spot supply is relatively sufficient. However, some alcohol companies' production profits have turned from profits to losses, which has supported prices. In January, China's 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, aquaculture continues to be in the off-season, and the rigid demand for DDGS will continue to weaken. The price of corn, the superimposed raw material, continues to fall, and the prices of corn and soybean meal, the related raw materials that have a substitution relationship, are generally weak. Therefore, the price trends of both supply and demand as well as related products are negative for the price trend of DDGS. Therefore, we predict that the overall price of DDGS in January will be negative. The chance of still being weak is higher. In the second half of January, due to the impact of moderate stocking before the Spring Festival and the price of corn and protein meal raw materials, there is a chance for a short-term rebound. Therefore, in the second half of January, the average ex-factory transaction price of DDGS is expected to stop falling and there will be opportunities for short-term regional strengthening. However, in January The probability of the monthly average price continuing to fall is still higher.

Soybean Meal

Monday is a public holiday in the United States, Martin Luther King Jr. Day, and the U.S. soybean market is closed. After the US Department of Agriculture reported a negative market report, prices continued to decline, driving the cost of imported soybeans to follow suit, and the market's bearish expectations continued to rise. Traders and feed breeding companies have slowed down their purchasing pace. Soybean and soybean meal inventories are at relatively high levels during the same period. Soybean meal prices will continue to weaken under the dual pressure of supply and demand.