Agricultural production in Hubei Province, China, is facing serious difficulties. Due to the quarantine measures put in place to control the spread of the coronavirus disease (COVID-19), shipments and deliveries of feed, feed raw materials, and livestock have almost come to a standstill.
(average cost and freight to Durban)
CHINA, SOUTH EAST AND CENTRAL ASIA
Europe and Russia
Middle East and Africa
The extended Chinese New Year holiday has left inventories depleted, and, combined with a slow recovery in production, prices have surged as feed manufacturers try to resume production. Expect prices to remain at higher levels, although some stability should return to the market as production recovers and logistics return to normal.
Near-term demand and production issues in China and Europe have caused sharp price increases; however, production is returning to normal. The longer-term outlook are for stable prices and supply, albeit at higher levels.
Both Chinese and European prices showed strong increases in February as supply dwindled and many buyers were forced to the spot market to cover gaps in supply caused by delayed shipments. It seems the worst is over, but prices will probably remain stable at higher levels as producers will be reluctant to decrease prices again.
Valine prices seem to have stabilised after sharp increases in late January and early February. With production and shipping difficulties improving every day, prices should remain stable.
Supply chain issues in China and re-registration issues in Europe have caused tryptophan prices to soar over the past four weeks. The trend could continue, as Chinese production is still lagging behind.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
Detailed reports and references are available on request.