Breeding situation
The current pig industry is in the down cycle of the new cycle since April 2022. Compared with previous cycles, the concentration of large -scale industries has increased significantly, and pig production capacity is mainly affected by prices, and external impacts have weakened.
At present, sow capacity is still at a high level, which means that the cycle turning point has not yet arrived.
In Q2 of 2023, the supply of pigs will still be sufficient, but the demand will continues to pick up, and the relationship between supply and demand will improve. Pig prices are expected to rise to the cost line near the middle year. However, under the premise of more supply, the rate and amplitude of pig prices rebound will be relatively slow and small.
Raw materials
As the new wheat's harvest date approaches, the traders sell corn in order to release the warehouse space, and the market supply has increased. The performance of the downstream market is still weak, and the processing enterprises are still mainly digestion stock. The enthusiasm for acquisitions is average. The feed companies have strong moods and weak demand to continue to suppress the spot price.
Feed companies have a strong mentality,some companies is starting to use wheat and imported grains to replace it. Down downstream downturn limits upstream goods, restrict the needs of enterprises, and the intention of replenishment is mainly to meet the real-time demand. At present, the corn market is sufficient and a large number of imported corn will arrive soon. Under the premise of limited market demand, the spot price of corn continued to be under pressure.
Market situation
Due to the increasing of Threonine price from the end of March, the market is hotter. Driven by the market, sales transactions have increased significantly.However as the downstream inventory and handheld orders increase in market, the later trend of Threonine needs to depend on market demand, inventory consumption and inventory consumption and Factory strategy.
Starting in June 2023, there are opportunities for new production capacity, whether 70% lysine, Threonine or Methionine. Although factory restricting production capacity release a while ago, and even stop production, as the company's market price increased, some factories have the temptation to gradually restore production or cancel the production restriction plan. Therefore, in the later stages of upstream, it is still necessary to face sales pressure. Under the condition that the overall supply is greater than the demand, it is expected that it is difficult to appear peak season again in June.
Post time: May-24-2023