Feed raw material market summary

1.Corn

1) China's corn inventory will continue to decline overall, but the quantity of natural dry corn on the market in Northeast production areas will gradually increase.
The quantity of imported corn and alternative raw materials has increased significantly year-on-year.
The total monthly consumption demand for corn on the demand side of breeding and feed production will increase with the increase in breeding.
Growth due to the gradual recovery of the market,

2)We predict that in the second half of the month, the average daily transaction price of corn spot in the production areas will generally remain stable, 
with a slight increase or decrease, and the overall trend will be slightly weak.

3) Looking further ahead, due to the possible speculation in the futures market on drought factors in corn-producing areas and the continued decline in inventories, 
the probability of subsequent overall rise in corn prices will gradually increase.

2.DDGS

1) DDGS prices remain weak and stable. Recently, the wait-and-see sentiment in the downstream market has been strong,
and the market demand is average. Most terminal purchases have a wait-and-see mentality and are purchasing as needed.
Alcohol companies have started operations relatively stably, and market purchases and sales have been light.
Some companies have accumulated DDGS inventories, which is negative for DDGS to a certain extent. price.


2) China's corn ethanol production industry will generally continue to be in the peak production season.
The national start-up rate will generally remain high. The total monthly production and supply of DDGS has moderately declined month-on-month.
The average daily transaction price of DDGS is slightly weaker in the first half of the month and is more likely to be bullish again in the second half of the month. High,
the probability that the monthly average price will continue to rise month-on-month is still high.