China’s pork output fell by 29,1% in the first quarter of 2020, compared to 2019, to 10,38 million t. Total production for 2019 was 42,6 million t, the lowest in 16 years. Although the swine herd is growing again after nearly 60% was decimated by African swine fever, production was hindered by the COVID-19 pandemic as slaughterhouses were closed to contain the spread of the virus.
(average cost and freight to Durban)
CHINA, SOUTH EAST AND CENTRAL ASIA
Europe and Russia
Middle East and Africa
The steady rise in demand for animal feed, among others, has pushed Chinese maize prices up, with a resultant upward pressure on downstream products, including lysine and other amino acids. Logistical challenges remain, albeit improved from March. It has been reported that the earliest shipment dates for Chinese product are early June.
Methionine supplies remained tight as Chinese producers scheduled plant maintenance, while production in southeast Asia remains limited due to the COVID-19 pandemic. Prices increased recently, but seem to have stabilised. Chinese poultry feed consumption is expanding and could put further upward pressure on methionine.
Just as with lysine, higher raw material costs, coupled with increased demand and tight supplies are pushing prices up. Demand can be expected to gradually increase as China’s swine herd recovers. European spot prices have come down from a peak in April, mostly due to the COVID-19 pandemic. Most end-users have already contracted Q2 and Q3 volumes.
Pressure on valine prices has stabilised somewhat. Chinese producers who can switch between threonine and valine are currently focused on threonine, with no indication if and when they will switch.
Chinese sales of tryptophan slowed as feed producers limited buying while soymeal prices softened lately. This has limited demand, despite the recovery in the Chinese swine herd. Tryptophan prices have stabilised at the current levels.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
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