SunSirs: Poor Demand, China’s Domestic DDGS Continues to Decline

　　According to the monitoring data of the business agency, since June, the terminal demand was not good, and domestic DDGS had begun to weaken, and continued to fall until July. As of July 13, the average domestic DDGS market price was 2500 yuan/ton. The price fell by 8.65%.

　　Poor terminal demand, domestic DDGS keeps falling

　　Beginning in June, the domestic DDGS market has seen a downward trend. The price of raw corn and terminal pigs has been falling continuously, the demand has weakened, and the price of corn has continued to fall. The demand for DDGS terminal aquaculture is general. The market for substitutes such as soybean meal and rapeseed meal has fallen, and the profits of alcohol plants have shrunk sharply. They have stopped for maintenance. The start-up time has not been determined. The inventory is mainly sold. The manufacturers have insufficient confidence in the price. They have lowered the ex-factory price of DDGS and domestic DDGS. The market continued to decline, and domestic DDGS fell nearly 8% throughout June.

　　By July, the demand for terminal feed was still not good. The alcohol factory entered the parking maintenance season due to profit loss. Domestic DDGS sold inventory mainly. The market continued to weaken downwards, falling to 2500 yuan/ton. The market transactions were average and the goods were flat.

　　On July 13, Heyang Alcohol DDGS was quoted at RMB 2,520/ton, the price was down 60 RMB/ton from the beginning of July, and it was shutting down; Ensign was shutting down, but no quotation was available; Dongfeng DDGS was offering RMB 2,460/ton, which was shutting down, Jilin The new Tianlong DDGS price is 2,520 yuan/ton.

　　Terminal demand is difficult to change in the short term, and the market outlook for DDGS is still weak.