November 11, 2020
China feed additives: Amino acids markets strengthen in October on rising corn costs
Amino acids prices strengthened amid higher costs while vitamins markets weakened further.
Hog inventories continued to expand whereas poultry population shrank substantially. Overall feed production in October was limited, hence limiting the sales of feed additives together with cautious mood of feed producers.
Prices of vitamin products were mostly lower during October. High prices of vitamin A dampened buying interest. Producers slashed the prices of VA500 by 8% while cutting those of VA1000 by 5%.
Biotin prices dipped 10%, as the costs of the product remained about 40% higher compared with January levels. Meanwhile, vitamin D3 and vitamin E producers cut prices by 9% in efforts to entice buyers.
Although vitamin K3 have plummeted 40% from May's levels,and were less than 10% from January's lows, demand remained sluggish. Producers were compelled to lower prices by 7%.
Prices of other vitamin products were either weakly stable or fell by less than 4%.
On the bright side, amino acids markets strengthened in October amid higher corn costs. Additionally, surging soymeal prices prompted feed producers to stock higher inventories of these feed additives in view of higher inclusion rates in feed formulations.
Lysine, whose production was limited, registered the highest price hikes of 11-12%. With costs higher, production limited and demand increased due to expanding output of hog feed, tryptophan prices climbed 9% over the month. With demand curtailed by a weak poultry feed market, threonine prices rose by 8%.
Prices of mineral products were mainly stable over the month.
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