According to the commodity market analysis system of SunSirs, in May, there was a long short game, with mixed ups and downs in the feed raw material market. The overall feed index fluctuated and rose, with an increase of less than 1%. On May 31, the feed material was 970 points, a decrease of 1 point from yesterday, a decrease of 28.52% from the highest point of 1,357 points in the cycle (2022-11-10), and an increase of 29.85% from the lowest point of 747 points on April 10, 2016. (Note: The cycle refers to 2014-03-01 present)
According to the price monitoring of SunSirs, there were a total of 3 products that went up, 2 products that went down, and 0 products that went up or down in the feed raw material price list in May 2024. The main rising commodities include DDGS (4.92%), soybean meal (2.69%), and corn (1.31%); The main commodities falling include wheat (-3.59%) and rapeseed meal (-1.19%).
After the rise in corn prices in May, there was a slight correction, with an overall increase of over 1%. At the beginning of the month, corn prices in the Northeast production area remained stable and advanced. Starting from mid month, the arrival volume of corn in domestic deep processing enterprises and port areas has sharply decreased. In order to stimulate arrival, deep processing enterprises in Shandong, North China and other regions have raised prices to replenish inventory, and corn prices have continued to rise. As of May 25th, corn prices have risen to 2,337 RMB/ton, an increase of 1.68% compared to the beginning of the month. Starting from the 26th, the domestic corn market gradually recovered, and manufacturers lowered their corn purchase prices one after another after completing the acquisition task, resulting in a slight decline in the overall domestic corn market price.
SunSirs agricultural product analyst believes that the main reason for the rebound in feed raw materials after the sharp rise in May is that in the first half of the month, the demand for terminal aquatic feed increased, and external soybean futures rose, supported by bullish sentiment. As a result, the DDGS market for corn, soybean meal, and rapeseed meal surged one after another. In the second half of the month, the bullish factors in the external market were digested by the market, and the continuous strong upward momentum of corn, soybean meal, and rapeseed meal prices was insufficient. As the end of the month approached, they all retreated, and the feed raw material sector rose and fell.
Entering June, the terminal aquaculture industry is still in its peak season, and the external market of American beans is in the growth period. The bullish factors are still present, and there is still room for the rise of soybean futures. Led by bullish sentiment, it is expected that the overall feed sector will continue to rise in the future.
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