Fall armyworm is continuing to spread across northern China, reaching several counties in Hebei province this month.
China has stated that it will not be blackmailed and warned of retaliation towards the United States (US) after President Trump vowed to slap a 10% tariff on USD 300 billion (ZAR 4,6 trillion) of Chinese imports from next month, worsening an already tense trade situation between the two countries.
(average cost and freight to Durban)
China and South East Asia
The theme throughout August continued to be low demand and depressed prices. Many producers are incurring losses and are using production halts to try and limit costs. With demand falling due the continuing spread of ASF, Chinese prices will remain weak, but stable. The continued weakening of the global market was seen most throughout the US and Europe with prices continuing a downward trend.
Demand from Chinese poultry producers have stabilised methionine prices, although the market remains vulnerable and at record low levels. In Europe, volumes traded have remained quiet with sellers noting reduced output from Chinese producers, which has tightened the market up slightly but is seen to be a backdrop for major new capacities that are expected to come online in China. Supply, however, remains abundant, and no major price moves are expected.
Global threonine markets are taking a hit with oversupply and poor margins taking their toll. The continued ASF outbreak crisis is severely eroding demand which can be seen with falling prices. Prices reached a record low in early August but seem to have stabilised somewhat at those low levels. With global oversupply and poor demand, prices should remain soft.
Valine prices have continued to remain fairly stable and seem to be holding at the current levels, after a gradual fall in prices. With the forecast of improving demand and continued stability, prices should remain in a narrow band.
Tryptophan prices have continued to decrease throughout August, despite a stable start. Oversupply in China and shrinking demand will keep prices low, although the downward scope is limited at the current levels. With no new business being confirmed in Europe there is a sentiment of weakening prices in the market.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
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