SunSirs: DDGS Price Increased on March

On March, domestic DDGS market ushered in a surge, and prices continue to go up. At the beginning of the month, the average price of DDGS was 1,793 RMB/ton, and at the end of the month, the average price of DDGS was 2,000 RMB/ton, with the price rising by 11.52%.

Products: At the beginning of march, the distillery basically resumed work, and some of the distillery turned to produce medical alcohol. The DDGS supply pressure is small, and the price is relatively strong. Due to the recovery of logistics, the quantity of pigs and poultry in the terminal increased, the demand for feed became weak, and the DDGS price showed a downward trend. 

Jilin area mainstream quotation 1720 RMB/ton, the price is stable. Henan DDGS mainstream quote 1750 RMB/ton, the price fell 30 yuan/ton. The main DDGS price in Shandong is 1900 RMB/ton, which is the same.

In the middle of march, due to the decline in the inventory of the distillery, and the transfer of some distillery to production, the terminal demand increased, and the buyer queued to pick up the goods. The price of corn raw material is firm, the distillery is full of confidence, and DDGS prices rise. 

The mainstream quotation in Jilin area is 1800 RMB/ton, and the price rises by 80 RMB/ton. Shandong area mainstream quotation was 1900 RMB/ton, and the price is stable. Henan area mainstream quotation was 1800 RMB/ton, and the price rises by 20 RMB/ton.

At the end of march, soybean meal as feed raw material performance bright. With limit futures trading but crazy spot, the price rose nearly by 400 RMB/ton compared with the beginning of March. Under the support of soybean meal price soaring, terminal aquatic feed rigid demand is warming, and the price of raw material corn is running at a high level, plus its own DDGS supply pressure is not big. Under such multi-heavy and multi-factor superposition, distillery DDGS prices have risen. 

The mainstream quotation in Jilin area is around 1900 RMB/ton, and the price rises by 50 RMB/ton. Henan DDGS mainstream quotation was 2000 RMB/ton, and the price rose by 80 RMB/ton. Shandong DDGS mainstream quotation was 2100 RMB/ton, and the price increased by 150 RMB/ton.

Raw Material Corn: In March, the terminal feed demand gradually recovered. The purchase demand of corn deep processing enterprises increased, and the surplus grain supply in main producing areas decreased, therefore the price of raw material corn continued to run at a high level, and the price of soybean meal as feed material rose sharply. The price of soybean as food variety continued to rise, so the price of corn was supported and remained high.

Market Forecast: SunSirs DDGS analysts think that terminal aquatic feed rigid demand increases, and soybean meal prices continue to be strong. DDGS still have room to rise in the short term. It is easy to rise and difficult to fall.

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