SunSirs: Cost support, Chinese DDGS Continues to Run at a High Level
August 13 2020 08:30:25 SunSirs (Linda)
According to SunSirs monitoring data, since August, domestic DDGS prices have remained high as a whole. The average market price of DDGS on the 1st was RMB 2,306/ton, and the average price of DDGS on the 12th was RMB 2,396/ton, a price increase of 3.9%.
Cost support, domestic DDGS prices continue to remain high
Beginning in August, due to the continuous shutdown of alcohol plants in many places, the supply of DDGS was not under pressure. The price continued to rise in the first week, with a price increase of nearly 4%. Starting this week, some alcohol plants resumed operation, and the price of DDGS has gradually stabilized. This round of DDGS rose sharply to stabilize, mainly due to the price of raw corn.
In August, the State Reserve corn auction continued, and auction transactions were still hot. Since the price of corn has been rising sharply since July, the increase this time is small, exceeding 1%. Due to the continued high price of corn, China National Grain Storage has adjusted the rules for participating in the auction several times, and the premium of corn auction transactions has eased, and the average auction transaction price has fallen slightly from the end of July. Corn spot prices have also stabilized. The price of raw corn rose sharply and stabilized. Affected by this, the price of DDGS began to stabilize.
SunSirsDDGS analysts believe that the corn market has gradually stabilized, and alcohol factories have resumed operation one after another, which is negatively suppressed, and the rise of DDGS in the future may be under pressure.
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