KW FeedCast - 28 February 2023

The latest episode of FeedCast is brought to you by Chris Davidson, our raw material expert. As usual he provides an outlook on the protein, mid protein and cereal markets.

Starting with soya, which is the most interesting at the moment due to its stubbornness to fall despite no real change in the market. Brazil, admittedly has struggled with the harvest over recent weeks due to heavy rain, however they are only 10% behind year on year and are expecting a record harvest of over 150mT. On the flip side Argentina continues to lower its forecast, and the Buenos Aires DA has just published an expected crop size of 33.5mT, which is a reduction of 12-15mT from the initial forecast, although this is not dissimilar to last years crop. Demand for soya is also remaining low, with the US weekly export and sales continuing to disappoint and at the moment there is no sign of increased purchasing from China. Despite all this, price is remaining at over £500T for summer. We would therefore advise you to wait and see before purchasing soya and take heart from the fact that the disappointing Argentinian forecast hasn’t pushed price higher.

Mid-Proteins are continuing to see a lack of demand at the moment, and this has resulted in lower pricing despite the lack of availability. This is happening across the board in rape and distillers, especially the May-Oct pricing for NovaPro and Rapemeal.

Over the past month cereals have seen an increase in price as the anniversary of the Ukraine: Russia conflict approached. Now this has past, the price has fallen again. It is worth noting that the Ukraine grain export corridor is due for renewal. This may affect price while the negotiations commence. At the moment the European crop is looking good, however there is growing concern over winter drought over Europe and if this continues alongside a lower Ukraine and Russian crop, this could put increased pressure on price. 

As always if you have any questions or need some help please don’t hesitate to contact the office or your local sales representative.

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Please note: The information provided during this podcast has been prepared for general informational purposes only and does not constitute advice. The information must not be relied upon for any purpose and no representation or warranty is given as to its accuracy, completeness or otherwise. Any reference to other organisations, businesses or products during the podcast are not endorsements or recommendations of AB Agri or its affiliated companies. The views of the presenter are personal and may not be the views of AB Agri. The contents of this podcast are the copyright of AB Agri.