SunSirs--China Commodity Data Group

Sign In

Join Now

Contact Us

Home > DDGS News > News Detail
DDGS News
SunSirs: Agriculture, DDGS Price Continue to Slump in the Second Half of 2019
December 27 2019 11:25:20SunSirs(Daisy)

1. Price Trend

As per SunSirs, DDGS prices in the second half of 2019 are mainly weak. The average market price was 2,000 RMB / ton on June 1, and the average market price was 1,750 RMB / ton on December 26, and the price fell 12.5%.

The trend of DDGS market in the second half of 2019 is roughly divided into two phases.

The first phase: June-July, after the oscillation rises, it drops sharply.

The second stage: from August to December, the bottom rebound rebounded sharply again.

2. Market Analysis

The First Stage: June to July

On June 1, the average price of DDGS is 2,000 RMB / ton. On July 31, the average price of DDGS is 1,886 RMB / ton, the price fell 5.67%.

In June, the performance of raw corn was strong. Some alcohol plants stopped and overhauled. The market supply was relatively tight, and manufacturers were able to price it. The price of domestic DDGS continued to rise. The average market price exceeded 2,100 RMB / ton, and the overall price rose by 2.5%.

Beginning in July, terminal demand remained weak. And alcohol plant inventory pressure was high. Coupled with the upstream corn temporary reserve auction, the boost was limited, and the price of DDGS continued to fall sharply. In July, DDGS prices fell below the 1,900 RMB mark and fell 7.97. %.

The Second Stage: From August to December,

On August 1, the average price of DDGS was 1,886 RMB / ton. On December 26, the average price of DDGS was 1,750 RMB / ton, and the price fell by 7.24%.

In August, the alcohol plant entered the summer parking and maintenance season, which was supported by bullish news. After a slight decline in DDGS, it ushered in a bottom rebound and supply tightened. The price of DDGS rose all the way to September 23, and the price rose to 1,983 RMB / ton. The increase was over 5%.

After September 24, DDGS started the second round of diving, and prices continued to fall. The main reason is that in the fourth quarter, the raw materials of the new season corn came to market, and some alcohol plants stopped and overhauled, and started up successively. Supply has increased while terminal aquaculture has entered a low season of consumption. DDGS supply and demand pressure has doubled, and prices have fallen all the way, falling below 1,800 RMB / ton.

Raw Material (Corn): In the second half of 2019, corn performed poorly, and the overall price fell by 1.61%. Beginning in June, the state reserve corn auction gradually turned into the normal state, and the transaction volume and price continued to decline. Although the price of live pig eggs rose sharply, the inventory was still low, and the demand for corn was not good, and the room for growth was limited.

After the third quarter, the new season corn is listed, and the weak corn price has not changed. The entire second half of 2019 will continue to be weak. The poor performance of raw corn and limited support for DDGS, coupled with DDGS terminal aquaculture entering the off-season, DDGS rose weakly.

3. Market Forecasting

SunSirs’ DDGS analysts believe that DDGS will continue to be weak in the second half of 2019. Entering 2020, the Spring Festival is approaching, the farming industry is collectively on the market and demand is suppressed. There is still little room for DDGS prices to rise, or it will continue to fall. The overall aquaculture environment in 2020 will be better than this year, and the overall price of DDGS in 2020 is expected to be higher than in 2019.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

 

Exchange Rate:

8 Industries
Energy
Chemical
Rubber & Plastics
Textile
Non-ferrous Metals
Steel
Building Materials
Agricultural & Sideline Products