Cattle Feeds

Raw Materials

Feed Raw Materials Update August 2013 August 7, 2013

Feed Raw Materials Update

Wheat

August wheat today is £30.00 below the same day last year. The UK crop has not been significantly harmed by the hot spell of weather and estimates are now put at 12.5 million tonnes. Early indications are that quality is good and yields are better than expected.

Production is up in the EU AND Russian yields are up 25%.

Demand has continued from the Chinese who are now buying substantial amounts of wheat, this suggests that they have a problem with their domestic crop. Supplies at present appear plentiful and will exert downward pressure unless some new factors emerge.

Hi Pro Soya

With the current weather forecast it still feels like this market has further to fall. As for the nearby positions, things are still very tight and shipments are still being delayed. As we have seen this year, crop transition months can be very difficult to negotiate especially if the US harvest is slightly delayed or hampered by rain. The next 3-4 weeks are still critical for crop development and any major change in the forecast could undo all the good done so far

Rapemeal

Rapemeal has now dropped £100.00 per tonne in a month for spot purchases. Further forward prices have also fallen faster and further than many anticipated. With the European crop now set to be above average attention should turn to Canada where their Canola crop due to late development this year may potentially have some frost risk. Generally things look much better than last year.

 

 

 

 

 

 

 


 


Raw Materials Update – June 2013 June 24, 2013

Wheat

Wheat prices are now lower than at this time last year. The Russian statistic office (Rosstat) forecasts the 2013 grain crop in Russia at 97.0 million tonnes which would be significantly above the drought reduced 2012 output of 71.0 million tonnes Closer to home the UK crop in now estimated to be 11.75 million tonnes (up from 9 million tonnes earlier in the year) and with the reasonable growing conditions we are now seeing could go higher. There are however considerable regional variations – East Anglia fair – North and West poor.

Hi Pro Soya

Soya supplies remain tight and prices extremely high due to the ongoing logistical situation and political/economic problems in Argentina. The US soya planting has caught up and with good growing conditions should produce a far better crop than last year.

Rapemeal

The UK crop is now estimated at 1.6m tonnes (average 2.6m tonnes) with the total European crop coming in at 20m (average 19.3m tonnes). Vegetable oil demand is low and crushing margins remain at historically low levels. Prices will be determined by the size of the European crop.