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SunSirs: Poor Demand, China's DDGS Market Fell Sharply in March

March 30 2021 09:21:25     SunSirs (Linda)

Domestic DDGS was relatively strong at the beginning of March. Starting from the middle of the month, the demand for terminal feed was flat, the raw material corn market weakened, and alcohol factories were not confident enough to stand up to the price. DDGS continued to dive in the market, and the price continued to fall. As of March 29, the domestic DDGS market was average. The price was RMB 2550/ton, which was 5.73% lower than the price at the beginning of the month.

Lack of demand, DDGS market plunges

At the beginning of March, the terminal feed industry entered a period of off-season demand. The price of raw corn continued to be high. The alcohol plant was supported by cost pressures. The ex-factory price of DDGS continued to be firm. Beginning in the middle of the month, African swine fever reappeared in some areas, poor feed demand, weak soybean meal market, coupled with the loosening of raw material corn prices, and the lack of confidence in the price of alcohol plants, prices began to continue to fall sharply. Towards the end of the month, corn prices continued to fall weakly, and terminal feed demand has not yet improved. The price of DDGS continued to decline. Throughout March, the decline of DDGS has been close to 6%.

On March 29, Heyang Alcohol DDGS price was 2480 yuan/ton, the price was 350 yuan/ton lower than the beginning of the month; Ensign’s DDGS price was 2400 yuan/ton, the price was 250 yuan/ton lower than the beginning of the month; Dongfeng DDGS was 2670 yuan/ton , The price fell 180 yuan/ton from the beginning of the month.

SunSirsDDGS analysts believe that the rigid demand for aquafeed breeding increased in April, and the market outlook for DDGS is expected to stop falling and rebound.

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