USA domestic prices for animal proteins are lower for all types this week as the weakness in vegetable protein seems to have caught up with the market but on the export side of things there has been no weakness so far in USA prices. However, CNF prices in Asia, the main market for animal protein these days, are quite a bit weaker with most prices down by as much as Usd 20 m/t although some trade reports do say that feathermeal prices are higher to Asia.
Australia and New Zealand export prices are reported to be lower on the week. One trade report mentioned that there were sales done at a much lower price level but that some of this was panic selling for orders where the l/c was not opened.
According to at least one trade report, there is quite an increase in interest in DDGS as a replacement for higher cost animal and vegetable proteins. Also, in a week where soymeal drops by about USD 30 m/t it is difficult to get buyers committing to any new purchases as they all expect prices to move much lower.
We have heard from Paraguay that their export supplies are building due to a lack of interest from Asia, as Paraguay is not competitive with European proteins at present. Paraguay exporters are said to be looking closely at almost any firm bid.
It has also been heard from a couple of suppliers that Vietnam buyers are back to opening letters of credit once again, so perhaps the banking situation in Vietnam has improved.