Rising Threonine Prices Anticipate With a Bright Start to Q2 in the United States

Threonine prices, both for feed and food grade, are poised for a rebound as the second quarter of 2024 commences in April, following a month-on-month decline. Market observers anticipate a steady resurgence in demand from the downstream sector, despite a sustained decrease in the corn market, a key feedstock for Threonine production, across the region.

Several factors are expected to support this anticipation. The inherent nutritional benefits of Threonine in maintaining animal health and optimizing growth performance are likely to drive a steady rebound in downstream purchases. Furthermore, in the food sector, analysts attribute the growth in the Threonine market to increased regulatory scrutiny, rising demand for convenient food supplements, and improved conditions in the nutraceutical market. This growth is fueled by heightened health and dietary focus amid a resurgence of economic activities following global uncertainties.

However, contradictory trends were observed in the feedstock market and are likely to follow this trajectory in the forthcoming period. The decrease in corn prices exerting some downward pressure on Threonine prices in the short term is however projected. Nevertheless, the overall outlook remains optimistic, with a trajectory toward stabilization and growth in the coming months, including April 2024. Merchants across the region are focusing on importing more Threonine from exporting nations, anticipating a further rise in the dollar value of these nations' currencies, making the goods more cost-effective for buyers. However, various logistical activities and input costs may keep overall production and end-product prices on the higher side.

On the logistical front, recent events in North America, notably the collapse of the Francis Scott Key Bridge and subsequent closure of the Port of Baltimore, could disrupt nationwide port operations, potentially affecting market sentiments for various commodities, including Threonine, in the last week of March. Experts anticipate that the closure of the Baltimore port will further increase costs for businesses and consumers along the East Coast, prompting the rerouting of container ships to nearby ports in New Jersey, Pennsylvania, and Virginia. Consequently, logistical adjustments will be necessary for the transport of goods, including Threonine, to their intended destinations, leading to increased expenses.

Looking ahead, Since January 2024, the onset of warmer weather conditions has spurred economic activities, leading to an increase in Threonine prices. Furthermore, climatic hurdles, notably supply chain disruptions, exacerbate the situation, especially concerning the bottlenecking risk along the Mississippi River. The amalgamation of hot, arid spring conditions and minimal winter snowpack diminishes water levels entering the river, posing significant hazards to vital trade transportation routes and affecting commodities like Threonine.