According to the monitoring data of the Commodity Market Analysis System of SunSirs, in August, the feed raw material market continued to rise, and the feed raw material index oscillated and rose, with an increase of nearly 7%. Entering August, the bullish factors remain, with soybean meal leading the rise and raw material prices such as DDGS wheat rapeseed meal rising one after another, leading to a comprehensive rise in the feed sector. On August 31, the feed raw materials were 1,296 points, an increase of 2 points from yesterday, a decrease of 4.50% from the highest point of 1,357 points in the cycle (2022-11-10), and an increase of 73.49% from the lowest point of 747 points on April 10, 2016. (Note: The cycle refers to the period from March 1st, 2014 to the present)

According to the price monitoring of SunSirs, there were a total of 5 products that rose, 0 products that fell, and 0 products that rose or fell in the feed raw material price list in August 2023. The main commodities that rose were soybean meal (13.10%), DDGS (6.96%), and wheat (6.49%).

Since August, the feed raw material market continued to rise in July, with soybean meal experiencing the largest increase, exceeding 13%; DDGS wheat rapeseed meal has increased by over 5%, while corn has the smallest increase, with an increase of over 2%. Futures market support, tightening market supply, improving demand, and multiple positive factors are still present. In August, the feed raw material sector saw a comprehensive trend of prosperity.

In early August, due to the impact of high temperature and rainy weather, as well as the reluctance of grain trading entities to sell at high prices, the supply of wheat in the market continued to be tight. Downstream flour processing enterprises continued to raise prices to replenish their inventory, resulting in overall strong wheat prices. Starting from the middle of the year, the overall process of purchasing summer grain in the main production areas has exceeded half, and the market's high-quality and tradable grain sources are gradually decreasing. In addition to the comprehensive factors such as reduced wheat production, polarized quality, and variable weather in some production areas this year, the overall mentality of grain storage trade entities is strong, and the weather has turned cold. The rigid demand for terminal flour has increased, and flour processing enterprises have prepared in advance. The wheat market price has risen comprehensively, and the wheat price has increased by over 6% throughout August.

Agricultural product analysts from SunSirs believe that the current increase in feed raw material prices is mainly due to the tight supply of raw materials, support from terminal rigid demand, and a significant increase in DDGS of soybean meal and rapeseed meal.

In September, the demand in the terminal aquaculture industry has increased, and the quantity of raw materials purchased by the feed industry has increased. Corn, soybean meal, rapeseed meal, and DDGS may continue to rise in the future, with a promising future.

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