Animal Feed Ingredient Market Information In China On January 25, 2024

Feed Ingredient Price List On January 25, 2024

Market Comments and Concern

Corn/Maize

Corn prices continued to be weak on the 25th. As the end of the year approaches, the domestic corn market purchases and sales tend to be light. After the price has fallen continuously, grassroots growers have a wait-and-see attitude towards raising prices. The quantity in some areas has begun to decrease, and the rate of decline has slowed down significantly compared with the previous period. 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

On the 25th, the price of DDGS was stable but weak. 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

Although rainfall in Brazil's production areas has improved soybean production prospects, high temperatures and drought in Argentina's agricultural production areas in the next two weeks may affect soybean growth. Traders continue to weigh the uncertainty of South American crop prospects, and CBOT soybean futures fluctuate within a narrow range. The shock recovery of U.S. soybeans has improved the bearish atmosphere in the domestic market. Before the Spring Festival, downstream stocking volume increased and the pressure on soybean meal inventories decreased, which enhanced the motivation of oil plants to raise prices. However, the current soybean and soybean meal inventories are still high, and the breeding efficiency is poor. Soybean meal prices If the price continues to fluctuate and adjust, whether there will be a clear rebound depends on the cost side of U.S. soybeans and domestic demand.