Animal Feed Ingredient Market Information In China On January 18, 2024

Feed Ingredient Price List On January 18, 2024

Market Comments and Concern

Corn/Maize

Corn prices fluctuated lower on the 18th. The main domestic production areas have more surplus grain during the same period, channel stocks are very small, there are policy support purchases, and the short-term pressure on the supply side has also weakened, which will support the periodic bottom of the corn market price. In the first half of January, corn prices in weak-producing areas will generally continue to decline. In the second half of January, affected by the limited growth in stocking demand before the Spring Festival, the inertia of some markets giving up on strengthening will adjust. At the same time, due to the second half of January The rise in weather conditions is 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 is weak and the second half may have an opportunity for stocks to rebound, while the monthly average price of stocks in January continues to fall month-on-month is still very high.

DDGS

The price of DDGS was relatively stable on the 18th. Domestic terminal market demand is average, and downstream wait-and-see sentiment is strong. Terminal companies purchase on demand, and some alcohol companies have good transactions, which slightly supports DDGS 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

As Brazilian soybean prices fell and Argentina's soybean harvest was strong, causing market concerns about U.S. soybean demand, the main CBOT soybean futures March contract fell 1.8%. The decline in U.S. soybeans continues to weaken the cost of imported soybeans. Domestic soybean and soybean meal inventories are at relatively high levels for the same period in recent years. Domestic feed breeding companies continue to be bearish on the market outlook despite poor breeding efficiency. The slow shipment of soybean meal from oil mills puts pressure on soybean meal prices. It is expected that soybean meal prices may continue to fluctuate and run weakly without strong support from bullish factors.