News summary
Feed raw material prices rose in Maycozinocasino, soybean meal and corn prices both rosecozinocasinoLarge-scale breeding companies can reduce the cost impact by adjusting the pace of slaughter. The market expects that there will be room for increase in feed prices, but the impact on pig costs will be limited.
Newsletter text
[The rise in feed raw material prices has limited impact on the costs of breeding companies.] With the arrival of May, the feed raw material market shows signs of recovery. However, the improvement in pig production efficiency by large breeding companies will help alleviate the impact of rising prices. Entering May, feed raw material prices got rid of the downturn in April and started an upward trend. Analysts predict that rising soybean meal and corn prices will increase feed costs, but breeding companies have the ability to reduce cost pressures by adjusting the pace of production. [Spot prices have increased significantly] According to Wind data, on May 21, the spot price of soybean meal in the Dalian market reached 3550 yuan/ton, an increase of 190 yuan/ton from the price at the end of April, an increase of 5cozinocasino.65%。The ex-warehouse price of corn in Harbin also rose by 50 yuan/ton to 2230 yuan/ton. [Factors for rising soybean meal and corn prices] The rise in domestic soybean meal prices is mainly driven by U.S. soybean futures prices. In addition, the rising cost of imported soybeans and the increased replenishment demand from downstream companies have promoted the steady growth of domestic soybean prices, thus forming a strong cost support for soybean meal prices. [Northeast Deep Processing Enterprises Purchase Corn] Due to the transfer of grain sources from the north to grain merchants, deep processing enterprises in the Northeast began to purchase dry grains, resulting in an upward trend in the prices of corn gathering ports in the north and corn prices in coastal ports. [Importance of feed costs in pig breeding] Feed costs account for as much as 60% to 80% of pig breeding costs, which has a decisive impact on the production and operation of breeding companies. [Falling feed costs help pig companies reduce costs] Due to falling feed costs, many leading pig companies achieved cost reductions in April. Both Muyuan and Wenshi have successfully reduced breeding costs by reducing feed costs and improving production efficiency. [Support from market expectations and feed demand for corn prices] Although the number of breeding sows and commercial pigs has declined, and feed costs have remained at a low level, the market's bullish expectations for pig prices and increased enthusiasm for secondary fattening will provide support for corn prices from the feed demand level. [Feed prices face upward pressure] In view of the rise in soybean meal and corn prices, feed prices may face a forced upward increase. However, large-scale breeding companies can still effectively control pig raising costs by improving production efficiency and adjusting the pace of slaughter. On the eve of the Dragon Boat Festival, the market is expected to usher in a small upsurge in pig sales. In this context, the income growth brought by the increase in slaughter is expected to offset the unfavorable factors of rising feed costs and continue to promote the improvement of pig breeding efficiency.
