SunSirs: Corn prices rose in May, but soybean meal and rapeseed meal prices fell, feedstock prices weakened

According to SunSirs monitoring: since May, the feed raw material sector has remained weak overall, with product prices fluctuating. Corn prices have steadily increased. Soybean meal has fallen with DDGS rapeseed meal. The situation is also unable to return to the sky, the feed raw material as a whole is still mainly weak. As of May 25, the average corn market price was 1971 yuan / ton, up 2.01%. Soybean meal fell the most, with the average market price falling below 2,800 yuan / ton, down 5.41%; DDGS followed by a decline of 1.89%, and rapeseed meal fell the most after several twists and turns, down 0.71%.

The market has less liquidity and corn prices continue to rise

Since April, the amount of corn that can be circulated in the market has gradually decreased, and the terminal deep-processing manufacturers have raised their prices and made up their stocks. The price of corn has entered a rising channel, which continues to rise. Supported, the corn price continued to rise. As of May 25, the average corn market price was 1971 yuan, a price increase of 5.42% from the beginning of April. Compared with other varieties in the feed sector, corn varieties are unique because of tight supply.

Live pig egg prices fell sharply, soybean meal and rapeseed meal DDGS fell

Soybean meal and rapeseed meal DDGS is mainly due to sluggish end demand. According to the monitoring data of the business community, throughout May, the egg price fell by 12.86%, and the pig price continued to fall, falling by more than 16%. Due to the sharp drop in the price of live pig eggs, farmers have sold squeezed live pigs, and the stock of live pigs has fallen sharply. Terminal feed mills purchase feed ingredients cautiously and purchase on demand.
Soybean meal was affected by the significant increase in the import of soybeans into Hong Kong. The soybean oil plant's operating rate increased, the supply was loose, and the price fell sharply. DDGS manufacturers lacked confidence in the price, and DDGS continued to follow the downward trend of soybean meal. Rapeseed meal is under the influence of the imported rapeseed policy, its performance is relatively resistant to decline, and it is still difficult to stop the decline. Due to the suppression of terminal demand, the rising price of corn has a limited role in boosting the double meal DDGS.

State Reserve corn auction opened, feed material market outlook will remain weak

SunSirs agricultural product analyst Li Bing believes that in the feed sector in May, the price of corn showed an upward trend, and other soybean meal and rapeseed meal DDGS fell. In June, corn, soybean meal, and DDGS may enter the downward channel, rapeseed meal may remain oscillating, and the feed sector will continue to decline.

The increase in corn is also due to insufficient supply. However, on May 28, the national temporary reserve corn auction will be opened. The first auction will be 4 million tons. The price of corn will be affected to a certain extent. For corn varieties that rise alone, the future market will be hindered.

Soybean meal is also not optimistic. Imported soybeans have arrived in Hong Kong one after another. The supply of raw materials is sufficient. It is difficult for the terminal pig stock to rise sharply in the short term. Demand is sluggish, and prices will remain weak. DDGS is dragged down by it, and the upside is still limited.

Rapeseed meal may be changed, because the quantity of imported rapeseed is small, the supply pressure is relatively small, and the relative fall resistance is stronger.

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