Raw Materials Update – June 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.