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SunSirs: DDGS Price Increased

March 24 2020 10:00:36     SunSirs (Daisy)

This week DDGS prices strong rise. At the beginning of the week, the average price of DDGS in China was 1,790 RMB/ton, and at the end of the week, the average price of DDGS in China was 1,833 RMB/ton, up by 2.42%.

Products: In mid-to-late March, due to the conversion of some distilleries to produce medical alcohol, the supply of DDGS was limited, and the inventory of distilleries was reduced, so the terminal purchase was queued to pick up the goods. 

In addition to the corn raw material price is strong, the distillery price confidence, DDGS prices ushered in a rise. The mainstream quotation in Jilin area is 1800 RMB /ton, and the price rises by 80 RMB/ton. Shandong area mainstream quotation was 1900 RMB/ton, and the price is stable. Henan area mainstream quotation was 1800 RMB/ton, and the price rises by 20 RMB/ton.

Corn: The purchase of corn in main producing areas is carried out one after another, the demand of terminal feed processing enterprises is stable, and the price of corn keeps running at a high level. The price of raw material corn is high, the distillery is supported by the cost, and the sales are mainly raised.

Market Forecast: SunSirs agricultural analyst Li Bing thinks that terminal feed demand has recovered, and the price of raw corn is high. In the short term, DDGS prices are still strong.

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