KW Feedcast - 31st August 2022

The latest Feedcast, brought to you by Chris Davidson and James Barker, continues to highlight the volatility we see in the market and how you should be looking for opportunities where you can, while being aware the market is trying to head up rather than down.

They start by describing the grains market at the moment. Maize in particular has seen a large rally off the back of the annual ProFarmer crop tour, which has taken place in the US over the last week. This year has seen maize estimates 15mT lower than the current USDA forecast, coupled with the weak European crop, these prices are likely to remain bullish. With Nov Wheat futures trading between £260-£270, it is worth considering taking cover if they get back to the £260 level.

The tour has also looked at soya, and while estimates started slow resulting in price increases, they have ended up around current USDA estimates and the price is beginning to fall again.  It is worth noting that the currency exchange rates are affecting this pricing heavily at the moment with the Doller stronger against a weak Pound. There is even talk of reaching parity at some point. However with harvest about to commence in the next few weeks and if the weather is as expected, we may well see a dip and an opportunity to buy, watch this space carefully!

Rapemeal is a different story with a large rally on pricing over the last fortnight due to the very high energy prices we are seeing at present. This has resulted in an increase on Winter pricing of between £20-£30T. However not all is doom and gloom with May-Jul seeing some discounting as crushers look to increase their forward sold positions. We believe it is worth keeping an eye on these prices and looking at taking cover if they continue to dip.

Opportunities in the market right now include Palm Kernels, one of the cheapest prices we are seeing right now, especially considering the SugarBeet and Soya Hull pricing and the fact wheat feed is hard to buy. Also worth a look is Vivergo Wheat Distillers who are back in the market and are seeing no sign of a slowdown. Finally NovaPro is also great value to fill up your DUP, while soya remains at the high price we are seeing at the moment. In the main the pricing in the markets today is really encouraging you to look at home grown products with good availability – let's not forget these are great from a sustainability point of view too – a win:win.

As always if you have any questions on any products or pricing don’t hesitate to call the office or speak to your seller