Animal Feed Ingredient Market Information In China On February 19. 2024

Feed Ingredient Price List On February 19, 2024

Market Comments and Concern

Corn/Maize

Corn prices fluctuated strongly on the 19th. Affected by the still strong Spring Festival atmosphere in China, sluggish grassroots purchasing and sales, and cooling rain and snow weather, market circulation continues to shrink, and some deep-processing quotations gradually show signs of slight increases. In February, China's corn supply was generally sufficient, and growers and traders in producing areas were still highly motivated to sell, which was still negative for prices overall. The stocking before the Spring Festival has been completed, and the actual impact on corn prices is obviously limited. It is predicted that corn prices in the production areas will still be weak in most of February, and there will be a short-term upward trend after late February. Because the demand side has limited inventory before the Spring Festival, there will be a relatively concentrated replenishment impact after the holiday. Due to the surge in imports of alternative raw materials, corn supply pressure will be huge in 2024, and it is difficult to predict a significant improvement in annual prices.

DDGS

DDGS prices were stable and slightly soft on the 19th. The domestic downstream market demand is average, some traders have poor transaction performance, some alcohol companies have implemented preliminary contracts, and downstream companies have a strong wait-and-see attitude. In February, the total number of major equipment startups in China's corn ethanol production industry will decline moderately. As some companies enter holiday mode, the new DDGS production and supply will decline moderately, but the overall supply will still be sufficient. On the demand side, aquaculture continues to be in the off-season, and stocking up before the Spring Festival has gradually come to an end, 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 will continue to be negative for the price trend of DDGS. Therefore, we predict that most of February There is a higher chance that DDGS prices will continue to maintain a weak and stable trend overall.

Soybean Meal

The weather situation in Argentina improved during the holidays, soybean harvest progress in Brazil accelerated, and the soybean planting area in the United States is expected to increase significantly in the new year. The international soybean market as a whole still maintains a weak operating rhythm. The domestic soybean meal market mainly relies on imported raw materials, so cost-driven is a key factor in the long-term trend of the domestic soybean meal market. Under the pressure of South American soybean supply and the expectation that the U.S. soybean supply and demand balance sheet will turn loose, coupled with the gradual slowdown in feed breeding consumption after the year, and limited demand for soybean meal, prices will continue to face downward pressure and are expected to consolidate slightly.