Concerns about China sticking its end of the Phase 1 trade deal with the United States (US) are starting to fade as major grain deals have been struck in the last few weeks. Chinese buyers started to book increasing volumes of grain from the US late in July, and that momentum has been maintained throughout August. Contracts for maize and soybeans have been continuously concluded for the 2020/2021 season throughout the month.
(average cost and freight to Durban)
CHINA and SOUTH EAST ASIA
Europe, Russia, and Central Asia
Middle East and Africa
Chinese lysine producers are standing firm and maintaining prices despite slow demand. Most producers are selling at a loss and are thus unwilling to drop prices further. If production costs increase, they will have to push prices up.
Methionine has found its footing, and prices stabilised late in August. There are even signs that slight increases could be on the cards. Prices dropped to uncomfortably low levels where the major producers started to take strain, with all of them reacting almost immediately to limit further price drops. Expect prices to creep upwards in the short term.
Threonine prices have remained stable with a slight uptick by at the end of August, with rising costs preventing any price drops. As with lysine, producers are standing their ground despite sluggish demand.
Valine prices have reached the bottom and are pushing upward again. One major producer has announced a hiatus in production for September and possibly October, depending on the market, and this will have an effect on prices in the foreseeable future.
As with other amino acids, tryptophan prices stabilised and have already started to increase to more sustainable levels. As the Chinese pig herd grows, so too will demand for tryptophan, which should support prices in the longer term.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
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