AMINO ACIDS REPORT
China’s agriculture ministry has stated that the danger from the fall armyworm pest is finally over for this year’s crop.
The damage inflicted by African swine fever on China’s pig industry may have been far worse than expected as official estimates show 1,2 million pigs have been culled since August 2018, but local livestock data signal a drop of as many as 100 million hogs over the period.
A city in southern China is selling pork at discounted prices to help consumers cope with high prices. People in Nanning, the capital of the south-western Guangxi region, can buy up to 1 kg of pork a day at a discount of more than 10% on the average market price.
(average cost and freight to Durban)
China and South East Asia
As expected, lysine prices remain weak. Some Chinese producers have cut output in an effort to limit losses, but this failed to support the market. Despite an expanded broiler flock, demand remains weak due to much diminished hog feed production. Two major European producers have announced price increases, while a third has withdrawn current offers. The European market seems to have strengthened somewhat.
Improved demand from the poultry sector has stabilised demand in the Chinese market. Supplies are adequate to tight and this has supported prices. Expect stable to slightly stronger prices. In contrast, European prices are stable to weaker with ample supply in the market.
Threonine prices seemed to stabilise early in September on the back of improved export demand, but by mid-September prices tested a new low due to oversupply and poor local Chinese demand. As producers started to cut output, prices stabilised, but are expected to remain weak.
Valine prices have continued to remain stable, with limited dips in the Chinese market. Availability is adequate with no real pressures to either side at the moment. Chinese demand could pick up with a growing poultry flock, but that remains to be seen.
The August trend of falling prices has continued into September with further drops, albeit smaller than in August. Some producers have indicated production cuts, but with poor demand this is unlikely to turn the tide around but could at least stabilise the market.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
Detailed reports and references are available on request.