KW Feedcast - 17 May 2022

Today’s Feedcast is brought to you by Chris Davidson and as usual gives you an overview of the raw material markets today, focusing on wheat, soya and the mid proteins. 

The wheat market continues to move higher and higher breaking new records. This week it is off the back of India deciding to ban exports, while this was not a surprise, the confirmation has resulted in London Wheat opening on Monday 16th £15 higher. This has resulted in new crop now being around the same price as old crop. The USDA report for wheat published last week has largely been ignored by the market, and the ongoing bullish story continues to keep the prices high, and with no real bearish news on the horizon it seems unlikely the market will calm down anytime soon. From an EU point of view dryness in France is beginning to be cause for concern, but generally the crops seem to be doing well. There are opportunities in ground maize and SugaRich products such as biscuit meal and bread which could offer a good alternative.

Protein wise we are continuing to see the soya price remain weak. Production of the 22/23 crop year is looking positive with some big numbers being talked about and this could see the price continue at these lower levels. While the US is behind in planting, the positive weather at the moment could see this turn around rapidly. The demand from China remains the big question, and the market is in flux waiting to see the outcome.

Mid proteins are seeing an easing of pricing as distiller boats begin to arrive and increased Vivergo availability expected from mid-June. Strangely prices are higher in the South than the North at the moment but Rape Expeller remains good value. It is worth noting lower prices have been on the nearby rather than the forward prices, which have seen increases over the last week.

The fibre market remains tight with slow arrivals of soya hulls and tight availability on Sugar Beet, Wheat Feed and Maize Meal.

This is a challenging market and you should focus on your margins, considering your forward milk price vs the forward feed cost and see if the time is right, rather than guessing what this market is going to do. You must manage your risk.

 As always, if you need any further information please contact your local sales specialist.