KW FeedCast - 4 January 2023

Our first FeedCast for 2023 sees Chris Davidson give a quick update on what has been happening in the markets over the holiday season.

Starting with the protein market, which has seen the biggest movements over the last couple of weeks. Soya has built more risk in to its price due to the ongoing dry conditions in Argentina, coupled with a decrease in UK currency, this has seen a significant rise in the price.. Brazil however is still performing well with a very positive start to the harvest. However, at the moment this is not reflected in the pricing. Mid proteins continue to be very difficult in the nearby due to lack of supply from Erith and Vivergo. However, the forward markets do look like an opportunity particularly the new crop, Aug-Oct. It is potentially worth looking at covering any protein risk you may have.

Over the festive period the Cereals market have added risk due to the snow in the US and the ongoing Ukraine, Russian conflict. It has given the majority of this back now, but it is worth considering the potential volatility here. While we are unsure of any damage to the US crop the expectation is this will be minimal, the main watch out continues to be the conflict in Russia and Ukraine. At the moment the export corridor remains operating, however the conflict has caused infrastructure damage and this will have an on going effect. We are also now seeing a lack of insurance for ships going in to the region, this could of course impact the number of ships prepared to go to the Black Sea. So far the markets have not responded to this information but it will mean continued volatility going forward. 

While it has been a relatively relaxed start to the year we expect volatility to remain high for the future and as usual we will be on hand to help with any advice should you need it. We wish you a happy new year and a prosperous 2023.

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