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A steep drop in U.S. ethanol output linked to the China trade war is tightening supplies of distillers dried grains and raising prices for livestock farmers. Many buyers are switching to soybean meal, whose price has eased since China halted U.S. soybean imports.
The Maschhoffs, a large hog producer, roughly halved its DDGS use from autumn to December.
Reduced DDGS supply pushes feed costs up and shifts demand toward soybean meal, which weighs on soymeal prices while supporting DDGS.
investing.comJan 17, 2019Not enough comparable past events yet for a historical read.
After 384 past bearish trade events, Soybean Meal moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
