This week’s feed update takes a look at the latest market trends of Dried distillers grains with solubles (DDGS) and Meat and Bone meal (MBM).
Spot prices of DDGS are stabilising as the supply fundamentals for soymeal become clearer ahead of the summer months. We’re expecting more soy, and lower prices.
Concerns over drought in the Western portion of the United States are leading traders to supply farms that usually don’t supplement their feed with DDGS. The impending droughts are expected to decrease reliance on grazing, and increase the reliance on feed. Interestingly, when we look at the price of DDGS compared to corn in the US they appear rather similar – an unexpected trend given the continuously increasing prices of amino acids.
With the decrease in the price of soy, we are also seeing a decrease in meat and bone meal, ruminant prices. Overall trading has decreased throughout the Middle East and Asia due to a decrease in feed demand from China and the start of the month-long Ramadan holiday.
Experts remain divided over the impact of African Swine Fever in China, with some claiming that the impact is minimal while others claim something far more significant. Early May should bring clarity on the status of demand at the end of the supply chain, as buyers complete orders for the next purchasing cycle following Ramadan.