SunSirs: China's Domestic DDGS Fell Sharply in June, A Decrease of 7.55%
June 30 2021 08:28:07 SunSirs (Linda)
Beginning in June, the profit of the terminal aquaculture industry has shrunk, the price of raw corn has weakened, and domestic DDGS has continued to be weak, and it has shown a sharp decline at the end of the month. At the beginning of the month, the average market price of domestic DDGS was RMB 2,736/ton, and at the end of the month, the average price of domestic DDGS was RMB 2,530/ton, a decrease of 7.55%.
Multiple negatives suppress the domestic DDGS market continued to decline in June
Beginning in June, the domestic DDGS market has expanded its downward trend. The price of raw corn has been dragged down by the continuous decline in terminal pig prices, and the market has fallen sharply. In addition, the demand for DDGS terminal aquaculture is not good, and the substitutes for soybean meal and rapeseed meal have been declining in the early stage. The profit of alcohol plants has shrunk sharply, and they have stopped for maintenance. The start-up time is undetermined and the inventory is mainly sold. Prices of domestic DDGS continue to decline.
At the end of the month, the price of raw corn fell sharply, and the terminal demand was not good. The price of DDGS inventory in alcohol plants dropped sharply. The price of domestic DDGS fell below 2500 yuan/ton, a drop of nearly 8%.
On June 29th, Heyang Alcohol DDGS was quoted at RMB 2,600/ton, which was a price drop of RMB 160/ton from the beginning of June; Ensign in Weifang was shutting down, and no quotation was available; Jilin Dongfeng DDGS was shutting down, and the inventory price dropped to RMB 2,460/ton.
In July, the alcohol factories resumed operation one after another, the demand for terminal aquaculture remained flat, and the domestic DDGS rose still weak.
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