China appears to be making progress towards reaching the goals set by the Phase 1 trade deal with the United States (US), whereby China increases agricultural imports from the US by 50%, based on 2017 levels.
(average cost and freight to Durban)
CHINA, SOUTH EAST AND CENTRAL ASIA
Europe and Russia
Middle East and Africa
Chinese lysine stocks remained tight in May with various manufacturers shut down for maintenance and corn stocks limited. However, flat demand, caused by low soymeal prices, and overall overcapacity in the market is limiting the upward scope of lysine prices.
Chinese methionine stocks have improved as demand has dropped in the wake of lower poultry product prices. Prices could drop further as production expansion is planned by at least two Chinese producers, while poultry feed demand is expected to remain sluggish.
Threonine prices are expected to increase as demand and production costs increase. Most Chinese manufacturers have indicated to be sold out for third quarter shipments, which could further affect prices in the foreseeable future, especially as international demand remains firm.
Valine prices settled slightly lower in May, with ample stocks and stable global demand.
With softer demand and ample stocks, tryptophan prices have shown slight retracements in the last few weeks after sharp increases earlier in the year. However, the downside is limited as Chinese demand gradually increases with a recovering swine herd.
This report contains information supplied by and compiled from eFeedLink and Feedinfo.
Detailed reports and references are available on request.