February 22, 2021
China Lysine: Producers lift prices amid corn shortages (week ended Feb 22, 2021)
Buyers were eagerly purchasing corn during the Chinese New Year period amid fears that the supply shortages would result in production difficulties. With output limited and the costs of corn set to soar further, lysine producers lifted export prices for Q2 deliveries while limiting order volumes to be on the safe side.
Transacted prices of 98.5-percent lysine in China strengthened to the range of RMB11-12/kg.
Export prices of 70-percent lysine increased from US$0.78/kg to US$0.82/kg.
Soaring costs and low availability of corn will continue to lend strong support to the prices of lysine. Nevertheless, hog feed demand is expected to weaken considerably following the high animal releases before Chinese New Year. Moreover, mortality rates of hog increased lately due to the rise in the cases of African Swine Fever disease. Feed producers will be more cautious in production as feed consumption dwindles.
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