This weeks feed additive update takes a look at the latest developments in the prices of corn gluten meal 60% and Tryptophan.
After the last USDA WASDE Report, prices for corn, soybeans and wheat have rallied further upward. Corn prices ended last week with a slight drop in prices. The big question is whether we will see the same degree of movement in the derivatives market with products like corn gluten meal. While derivatives are following the direction of the commodities market, they appear to be doing so with far less magnitude. This is perhaps owing to the volatile impact of financial markets on commodity prices. However, flooding in Belgium, Germany, and France may impact both commodities and their derivatives alike.
Interestingly, the data in Glowlit shows a 2.9% decrease from last month to this month in the price of corn gluten meal 60%. We’ve read reports that shippers have since used up all their backlog stock of corn gluten meal, which should bring the price movement back in line with other corn derivatives. If that happens, we may see higher prices in Q4 of this year. Looking back at Glowlit’s historical data for corn gluten meal, we see that May 2014 showed a 30 year record high price at a staggering 940 USD/MT.
The average global price of tryptophan has seen a comparatively slow decrease since its peak in March of this year following a sharp spike that began in January of this year. The price decreased 12.5% from last month to this month. Factories for both CJ in Indonesia and Henan Julong have scheduled summer maintenance periods affecting tryptophan production. Looking back at Glowlit’s historical data for tryptophan, we see that January 2013 showed a 10 year record high price of 33.6 USD/KG.