Lysine - March 15th 2021

March 15, 2021

Author: Guy Soreq

Lysine - March 15th 2021

Commodity prices have decreased in China's Dalian Commodity Exchange following concerns of an African Swine Fever (ASF) resurgence. Last week corn prices in Northeast China fell for three consecutive days, by about 90 Yuan/ton (14 USD/ton). Soybean meal also fell by 300 Yuan/ton (46 USD/ton).

The downward turn follows increased market concerns that ASF is not yet fully behind us, with the disease continuing to impact China's breeding herd over the past three months. Investors are showing a loss of confidence in the future of feed ingredient demand, while producers are still trying to understand whether livestock demand for feed will be sustained over the coming months.

Glowlit saw a 25% decrease in interest in Lysine in the last week, with the price stabilizing from one week to the next. With the price of Lysine closely tied to that of soy and corn, we’ll be watching to see whether a downturn follows.