Animal Feed Ingredient Market Information In China On January 24, 2024

Feed Ingredient Price List On January 24, 2024

Market Comments and Concern

Corn/Maize

Corn prices continued to fall on the 24th. As the Spring Festival approaches in China, grassroots growers still have demand for grain sales, and the market supply is relatively loose. Most feed companies have completed stocking up, focusing on small and sporadic replenishments. Deep-processing companies have limited demand for warehouse building, and prices continue to be depressed. In the second half of January and before the Spring Festival in early February, China's corn supply is still generally sufficient, and farmers and traders in producing areas are still highly motivated to sell, which is still negative for prices overall. In the latter part of February, before the Spring Festival in Shangcun, due to the limited growth in stocking demand before the Spring Festival, the probability that the local market will turn from weak to strong will increase moderately. At the same time, due to the cold wave weather in late January, if corn sales and transportation in the production areas are affected, There is an opportunity for corn stocks in the sales area to rise. Therefore, judging from the average daily trading price trend, the possibility that corn prices in production areas will remain weak overall before the Spring Festival in late January and early February is still obviously high, and will tend to rise after late February.

DDGS

DDGS prices were stable on the 24th. Domestic terminal market demand is average, downstream users have actively increased their purchases, terminal companies purchase on demand, and some alcohol companies have good transactions, which supports DDGS prices to a certain extent. Before the Spring Festival in late January and early February, China's corn ethanol production industry continued to be in the peak production season, the production and supply of DDGS was still high, and the overall supply was 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 with substitution relationships, are generally weak. Therefore, both supply and demand and the price trends of related products continue to be negative for the price trend of DDGS. Therefore, we predict that in late January and February Before the Spring Festival in early October, there is a higher chance that DDGS prices will remain weak overall. On the demand side, moderate stocking before the Spring Festival may have a short-term boost to prices, but the hope is slim. There is a higher chance that the overall trend will remain weak in mid-to-late February.

Soybean Meal

CBOT soybean futures closed higher for a second straight day on technical buying and short covering after hitting multi-year lows, and the possibility of dry and supportive weather in Argentina, although sluggish demand limited price gains. The rebound of U.S. soybeans from low levels has alleviated the market's bearish sentiment, inventory pressure has declined, and soybean meal spot prices have temporarily stabilized. The increased demand for pre-holiday stocking consumes a certain amount of soybean meal stocks, which enhances the motivation of oil mills to raise prices. However, the current soybean and soybean meal stocks are still high, and soybean meal has not yet gotten rid of its weak situation due to poor breeding efficiency.