SunSirs: Poor market demand, DDGS continues to weaken

1. Price Trend

According to SunSirs data monitoring: since May, the price of domestic DDGS has continued to decline weakly, with prices falling close to 2 points. At the beginning of the month, the average domestic DDGS market price was 2120 yuan / ton. On the 22nd, the average domestic DDGS market price was 2080 yuan / ton, and the price fell by 1.89%.

2. Market analysis

After the May Day holiday, domestic DDGS ushered in multiple negative factors, and terminal aquatic feed manufacturers purchased cautiously and used as they were. The prices of poultry and hog end products continued to fall, and the willingness to purchase DDGS was weak. In addition, the upstream corn was suppressed by the State Reserve auction news, and the room for price rise was limited. Domestic DDGS manufacturers were not confident about the price, and the price continued to decline. DDGS mainstream quotations for alcohol plants in Shandong area were 2100-2150 yuan / ton, the price fell by 50 yuan / ton; Henan mainstream prices were 2120-2150 yuan / ton, prices fell by 30-50 yuan / ton; DDGS mainstream prices in Jilin region were 2020 yuan / ton The price dropped by 60 yuan / ton.

Industry chain: As the profit margin of the aquaculture industry continues to shrink, feed enterprises as a whole purchase corn more cautiously, and the stock volume is still at a low level, and the domestic corn market price rises. The auction policy of the State Reserve finally arrived. The auction started on May 28 with 4 million tons. The starting price is the same as last year. The price rise of raw corn is limited, and the effect of supporting the rise of DDGS is limited.

3. Market forecast

SunSirs analyst Li Bing believes that the demand for terminal feed is unlikely to increase significantly in the short term, and the temporary storage of corn enters the market. The market outlook for DDGS is still under pressure.

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