KW Feedcast Episode 13 - 3 August 2021

In today’s episode of KW Feedcast, Raw Materials Buyer, James Butt-Evans looks in to the increasing wheat prices and what deals are existing in the markets at the moment.

While the barley harvest is now 50% cut and prices are alleviating, wheat is a whole different story. The tightening in the wheat market is due to a variety of factors. Firstly the European harvest, which has been severely delayed by the rain. 50% is now cut, however over 400,000T of boats are waiting to be loaded. The rain has also meant the quality of this wheat is now questionable – although this may have a positive effect for animal feed. Secondly the heat in the US continues to be an issue. A recent wheat quality check in Dakota has seen the announcement of 29.1 Bushels per Acre, well below the 5yr average of 43.6. We are all relying on a good UK crop, but with harvest at under 5% cut at the moment we will have to wait to see if an opportunity does arise.

Positively soya prices have dropped for winter and the first part of next summer and wheat distillers are also looking like a good opportunity at the moment.

As we have said previously, look for opportunities as they arise and think about what you can do to cheapen your winter ration. It looks as though we are likely to have a season of higher prices than we have seen for the last few years.