When the release of new capacity encounters the raging new crown virus and the supply exceeds demand, in recent months, more fermented amino acids have fallen from the top of the mountain to the bottom of the valley, such as lysine, threonine, tryptophan, valine, etc. ), while the raw material corn has been advancing all the way, madly rising. Amino acid companies have suffered double-sided blows from costs and prices. In addition to the high temperature maintenance period, the operating rate of factories has dropped, and the number of manufacturers that stop reporting and raise prices has increased. Domestic breeding has resumed. Good, the amino acid market stopped falling and picked up at the end of the month, and purchases and sales improved. At present, the market price of 98% lysine is RMB 7-7.5/kg, the price of methionine is RMB 18-19/kg, the price of threonine is RMB 8-8.5/kg, and the price of tryptophan is RMB 43.5-46/kg.
Manufacturers stop production and report information constantly
Ten consecutive auctions of temporary storage corn have seen high transactions and high premiums. The corn market is hot, with an increase of more than 100 yuan per ton from the beginning of the month. The current average market price of 2275.26 yuan/ton has risen to the highest point in the past five years. Soybean meal has also followed suit. At the beginning of the month, it rose by 200-300 yuan/ton. Corn is the raw material for fermented amino acids such as lysine, threonine, and tryptophan. Corn deep processing companies continue to increase the purchase price, and feed companies have increased costs due to large materials and substitutes. Price surges ranged from 50-100 yuan/ton. The demand for amino acid capacity expansion this year is weak, traders sell goods, manufacturers cut prices to promote transactions, supply shrinks to reduce losses and ease inventory pressure.
Improvement of domestic farming recovery
The plum blossoms in the south in mid-to-late July, and the flood situation slowed down at the end of the month. This month, domestic poultry farming efficiency improved, chickens and eggs increased, and pig prices rose. If it is very Tailai, the eggs have been lost for more than half a year. Entering a phased rebound stage, egg prices rose gradually in July, and egg dealers turned losses into profits. According to data tracking of Huitong, as of July 31, the average price of eggs was 8.05 yuan/kg, an increase of 70% from the beginning of the month. Since the beginning of this year, floods have caused 33.85 million disasters in 27 provinces (autonomous regions and municipalities) including Zhejiang, Anhui, Jiangxi, Hubei, Hunan, Guangdong, Guangxi, Chongqing, Sichuan, Guizhou, etc. The profitability of pig farming is huge, and the domestic pig inventory continues to improve. According to the 4000 fixed-point monitoring of the Ministry of Agriculture and Rural Affairs, the stocks of pigs and breeding sows in breeding households have increased for 5 consecutive months.
To sum up: supply shrinks, high costs, manufacturers’ attitudes towards prices are increasing, and domestic epidemics are properly controlled. Some researchers say that vaccines may be available for use next spring, domestic catering industry consumption improves, aquaculture industry gradually recovers, and soybean meal prices rise. Favoring the demand for amino acids, the market has stopped falling and recovered, and the market has stabilized and performed strongly. However, the foreign epidemic situation is still severe, with nearly 200,000 newly diagnosed cases every day. Among them, the United States, Brazil, India, Russia, and South Africa are particularly severe. Foreign demand is still weak, and most domestic companies have replenished their stocks, inhibiting the market rebound.
Post time: Oct-26-2020