KW Feedcast - 19 July 2022

Today’s Feedcast is brought to you by James Barker and Jonathan Hanson, one of our KW product Managers. This episode sees them discussing what has been happening over the last few weeks in the world markets, including the political and weather influences to pricing.

The potential Ukraine food corridor continues to affect the raw materials markets, especially the wheat, which has seen high levels of volatility as optimism remains around the opening of the corridor, which of course has been ongoing for a while now. 20 million tonnes of grain is sitting ready to leave Ukraine, the question is will it actually be released. The daily change in the likelihood of this happening means the price continues to fluctuate rapidly even though the actual situation remains at a standstill.

Also affecting the world markets and topical today is the weather. Any change in the forecast can affect pricing. Right now we are at a critical time for growing in North America and the weather is not playing ball. On top of this the condition of the crops continues to deteriorate, as this falls, prices continue to firm up. All these external factors including currency, talk of recession and inflation rates are affecting the volatility we are seeing at the moment. This means you need to pick dips when they happen and take advantage with a percentage of your needs, helping you to take risk out of your books. With the majority of pricing coming off the back of media stories rather than facts and figures, it is a very difficult market to get right.

The majority of the protein and fibre prices have remained stable this fortnight, with the exception of NovaPro which still looks very good value compared to soya. As always if you want to talk about anything discussed in today’s podcast or require feeding advice please contact your sales specialist or the KW office.