Owing to an Increase in Material Costs and a Better Demand from the Terminal, Feed Prices Would Ascend

By CnAgri2018-08-22 15:14:12 Print Recently, feed companies in some areas started to raise their prices, and pig feed prices increased by RMB 50/MT. BOABC’s analysts thinks: supported by an increase in material costs and in feed demand, feed prices all would go up again in the near future.
1)The growth in soybean costs is definitely settled. Currently, South American soybean exports have nearly finished, and soybean import costs would go up in the near future. Soybean meal prices have ascended to more RMB 3,300/MT in most areas and still would have room for growth in the near future.  
2) Along with a tight balance between supply and demand, corn prices would maintain at a high level after new-corn availability on the market.
3) The fourth quarter is always busy season for feed consumption; besides, current farming margins have improved, and the stocks show the increasing trend, which all provide strong support for feed consumption.
 
Currently, feed companies don’t raise their prices in order to assure feed sales, but the growth in feed price is definitely settled. It was predicted feed prices would go up from September.