SunSirs: Soybean Meal Led the Decline, and the Feed Raw Material Weakened in May in China

According to the monitoring data of the Commodity Market Analysis System of SunSirs, in May, the market for feed raw materials fluctuated, and the overall rebound was weak. The feed raw material index oscillated and fell, with a drop of nearly 4%. On May 31, the feed raw materials were 1,108 points, a decrease of 12 points from yesterday, a decrease of 18.35% from the highest point of 1,357 points in the cycle (2022-11-10), and an increase of 48.33% 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, in the May 2023 feed raw material price increase and decrease list, there was 1 product that rose, 4 products that fell, and 0 products that rose or fell. The main commodities that rose were rapeseed meal (4.13%); The main commodities falling include soybean meal (-12.81%), DDGS (-5.76%), and wheat (-2.67%).

Starting from May, the rise and fall of feed raw materials have been divided, with a significant decline in soybean meal. In addition, the DDGS of corn and wheat have all decreased, with a drop of nearly 6% in DDGS. Only rapeseed meal has seen an overall increase, which is far less than the decline in soybean meal, leading to an overall decline in the feed sector in May.

SunSirs agricultural product analyst  believes that the decline in the current feed raw material market is mainly due to the suppression of soybean meal market, loose supply of feed raw materials, and limited support from terminal demand.

Starting from June, there is still a large amount of imported soybeans arriving in Hong Kong, and the supply of soybean meal is still under pressure. The future market is under great pressure, and the supply of rapeseed meal is also relatively loose. The bearish factors of feed raw materials such as corn and wheat DDGS are dominant, and the feed raw material market will continue to operate weakly in the future.

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