Prices for Feed Additives Continue to Weaken Despite Normal Levels of Purchasing Demand and Trading Activity

12 January, 2024

During the initial week of 2024, there was a consistent decline observed in the performance of almost all feed additive products, mirroring the market patterns in the end of 2023.

The 2024 Spring Festival falls on February 10th, 2024, marking a slight deviation of around one month from the dates observed in previous years. This means that certain buyers still need to stockpile various feed additives in the month of January. This is also reflected on an overall improvement in demand and transactions on the Mobaobuy.com platform compared to previous years despite there has been some fluctuations in the transactions in recent weeks

Based on the feedback provided by our corporate members who are involved in feed manufacturing, it has been observed that companies in the feed manufacturing sector have either already completed the procurement of or are currently in the process of procuring vitamins and amino acids to satisfy their production demand by March 2024. However, the inventories held by various feed companies can only sustain production until late February, especially for small to medium-sized companies. This creates a potential demand for procuring these feed additives in March. As logistics services are expected to gradually slow down at the end of January, a majority of orders for immediate demand are anticipated to be placed during early to mid-January, despite the projected decrease in prices as suggested by most industry insiders.

Various market information on the information provider platform Boyar indicates that, since the New Year’s Day holiday in 2024, pig prices have experienced fluctuations with a downward trend. It is worth noting that egg prices decreased after an initial increase, while broiler chicken saw a rise in prices. The stocks of spot soybean meal consistently increased at the current high level, leading to considerable selling pressure and subsequently causing a decline in soybean oil prices at oil mills. Additionally, corn prices followed a downward trajectory with occasional fluctuations and demonstrated varying price trends in different production regions.

It is highly likely that the existing price patterns and the overall oversupply situation, along with low demand, will continue for a considerable period of time, most likely until the conclusion of the Spring Festival holiday. Furthermore, there is an expectation that market demand may rebound following the initial surge in purchasing activity in March. However, the changes in price trends depend on the operating rate of manufacturers' production facilities during the Spring Festival holiday, as well as the growth in demand driven by advancements in the animal farming industry and the supply conditions of manufacturers.

As we step into 2024, the number of brand flagship stores being established on Mobaobuy.com is steadily increasing. Following the conclusion of the Spring Festival holiday, numerous registered traders will be capable of selling their products on the platform. In addition to the range of feed additives available, which encompass vitamins, amino acids, minerals, feed enzymes, and carotenoids, we are actively striving to introduce various corn deep-processing by-products, including DDGS and corn gluten meal, as well as oil by-products such as soybean meal and rapeseed meal. Furthermore, we are also working towards offering pretreated protein products like fermented soybean meal and fermented cottonseed protein through diverse collaboration methods.

With a strong foundation of 4,133 registered corporate members and 16,045 individual members, we will utilize the seamless digital integration within the feed industry to provide enhanced and tailored services for the efficient and digital operation of both upstream and downstream businesses.

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