KW FeedCast - 21 December 2022

The last FeedCast of 2022 sees Chris Davidson discussing the recent falls in the cereal markets and what this means for opportunities as well as a quick overview of the protein markets.

The cereal markets are seeing a real opportunity at the moment as the markets respond to Christmas with a risk off attitude. September through to April 24 is looking positive with pricing becoming favourable to prices we have seen pre-war. It is worth considering taking risk off your table and we are seeing a lot of customers taking 50% cover to alleviate any potential future risk. Having said that nearby still remains very tight and prices and availability reflect that. 

Forward buying on the protein markets seems to be focused on Rapemeal, with prices looking very competitive against soya and distillers are not competing at the moment. This is a picture that could change rapidly as the hull plant shuts at the end of the year and energy prices may mean we see less seeds crushed. Soya has rallied in the last few weeks, which is a reaction to the continuing bad weather in Argentina and an expectation of increased demand from China as they continue to unlock covid regulations. The Brazil crop is looking better than expected, at around 150mT, if this does continue it may help alleviate the tightness and be reflected in forward pricing. 

As always, the prudent approach is to look at forward cover and take risk off your table where you can. 

We wish you and your families a very Merry Christmas and Happy New Year from all at KW Feeds.

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