# Animal feed compounders choosing soymeal over expensive DDGS  : The Daily Digest

> Animal feed compounders are substituting cheaper soybean meal for DDGS, which has become more expensive as ethanol production falls. Reuters reports that China is importing less soymeal, leaving extra supply that is pushing soymeal prices down and improving feed margins. The shift follows the ongoing trade war with China.

- Date: 2019-01-21 · published 2019-01-21T12:00:00.000Z
- Category: trade · region US · magnitude low
- Page: https://feedsoft.ai/events/61097-animal-feed-compounders-choosing-soymeal-over-expensive-ddgs-the-daily-digest
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Soymeal oversupply lowers feed costs and supports demand for it, while the reduced DDGS availability keeps DDGS prices firm.

## Read by commodity

- SBM: bearish ▼
- DDGS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2018-01-02 | [As world eats more meat, U.S. soy losing battle to feed animals \| Bowling Green Daily News](https://feedsoft.ai/events/67115-as-world-eats-more-meat-u-s-soy-losing-battle-to-feed-animals-bowling-green.md) | +1.6% | +8.9% |
| SBM | 2019-10-14 | [China September soybean imports ease on falling animal feed demand](https://feedsoft.ai/events/56562-china-september-soybean-imports-ease-on-falling-animal-feed-demand.md) | +0.5% | -0.7% |
| SBM | 2018-08-08 | [China has expanded the use of low protein animal feed formulas](https://feedsoft.ai/events/63515-china-has-expanded-the-use-of-low-protein-animal-feed-formulas.md) | +0.7% | -8.0% |
| SBM | 2019-08-22 | [What's coming for the $45bn Chinese animal feed market?
						 \| The Pig Site](https://feedsoft.ai/events/57567-what-s-coming-for-the-45bn-chinese-animal-feed-market-the-pig-site.md) | -0.2% | -0.8% |
| SBM | 2018-07-08 | [China’s demand for protein could increase rapeseed prices  : The Daily Digest](https://feedsoft.ai/events/64131-china-s-demand-for-protein-could-increase-rapeseed-prices-the-daily-digest.md) | -3.2% | -2.1% |

## Sources

- biofuelsdigest.com: https://biofuelsdigest.com/animal-feed-compounders-choosing-soymeal-over-expensive-ddgs/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.