In March 2023, the lysine market was operating steadily and weakly. Due to losses, some factories are now willing to increase prices. However, the export volume of lysine has decreased, and domestic demand is poor. Henan Jinyufeng plans to start production with a new production capacity of 200000 tons of lysine in June, and market expectations remain biased. On March 29th, the market reported that Meihua, Yipin, and Fufeng offered 98% lysine at a price of 8.6 yuan/kg, and 70% lysine at a price of 5.5 yuan/kg. As of the end of March, the market quotation for 98% lysine was 8.4-8.9 yuan/kg, a decrease of 0.1 yuan/kg compared to the previous month, and the quotation for 70% lysine was 5.3-5.7 yuan/kg, a decrease of 0.1 yuan/kg compared to the previous month. It is expected that the lysine market will continue to maintain a stable, moderate, and weak trend in April.

Corn market price drops in March 2023

In March, both domestic and international corn prices fell. According to data from Huitong, as of the end of March, the average price of domestic corn was 2792.89 yuan/ton, with a decrease of 47.79 yuan/ton at the beginning of the month. In March, the bearish situation peaked. In the domestic corn market, the temperature in the Northeast region significantly increased, and the sales of grassroots grain were high. In addition, imported corn from the south was concentrated in Hong Kong, while losses in pig breeding and starch processing suppressed demand. The international market generally expects that the planting area and output of corn and wheat will increase significantly in the new year, the tension in food supply caused by the conflict between Russia-Ukraine conflict will be eased, and the price of corn and wheat will fall back. The corn market in April is intertwined with bullish and bearish factors, and is expected to experience weak volatility and consolidation.

China's lysine export volume decreased by 19.3% year-on-year from January to February 2023

According to customs data statistics, from January to February 2023, the export volume of lysine, lysine salts and esters in China was 131000 tons, a year-on-year decrease of 19.3%. The domestic export volume of lysine in January was 61000 tons, a year-on-year decrease of 21.2%. In February, the domestic export volume was 70000 tons, a year-on-year decrease of 17.52%. In 2023, domestic lysine salts and esters will be mainly exported to the Netherlands, Germany, Thailand, Vietnam, the Russian Federation, the United States, Poland, Denmark, Lithuania, Canada, India, etc.

Low domestic pig prices in March 2023

According to data from Huitong, as of the end of March, the average price of three yuan wool pigs at home and abroad was 14.86 yuan/kilogram, a decrease of about 1 yuan per kilogram compared to the beginning of the month. On the one hand, the number of sows and live pigs on hand is still high. On the other hand, terminal consumption is lower than expected, and supply exceeds demand. Pig farming is hovering within the loss range, and the enthusiasm of farmers to make up for it has decreased. In some regions, non epidemic situations are on the rise, and the provision for impairment of biological assets in New Hope exceeds expectations. In mid April, the market will experience a concentrated release of the second round of fattening after the year, and it belongs to the off-season of consumption. It is expected that pig prices will fluctuate at a low level in April.

Source: Feed Industry Information Network