In mid-March, due to poor terminal demand, the domestic DDGS market fell sharply, with a drop of more than 8% in half a month. Since April, the decline in the domestic DDGS market has slowed down and rebounded. On April 14th, the average market price of domestic DDGS was 2,590 yuan/ton, an increase of 1.57% from the price at the beginning of April.
Alcohol plants are very expensive, DDGS market improves
Beginning in mid-March, 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 for half a month, and DDGS fell by more than 8%. Entering April, terminal aquaculture has started one after another, the demand for DDGS has increased, and the inventory of alcohol plants is low, and the price is mainly high. Some alcohol plants have raised their quotations by RMB 100/ton.
On April 14th, Heyang Alcohol DDGS was quoted at RMB 2560/ton, the price increased by RMB 100/ton from the beginning of the month; Ensign’s DDGS quoted at RMB 2,550/ton, the price increased by RMB 100/ton from the beginning of the month; Dongfeng DDGS quoted at RMB 2,670/ton Tons, the price is the same as at the beginning of the month.
SunSirsDDGS analysts believe that demand in the terminal aquaculture industry has improved, and the supply of alcohol plants has tightened, and DDGS will continue to be strong in the future.
