Weather concerns around the globe driving feed prices up
Global weather concerns have continued to put upward pressure on feed markets.
Alex Black
KW Feeds said it had also highlighted the need to have next winter’s feed buying well underway, and to secure any remaining summer requirements sooner rather than later.
Claire Bradley, KW Feeds trading manager, said: “Rising protein prices have been hitting the headlines since January, with a weather-hit Argentinean soyabean crop, reduced rapemeal crushing in Europe and limited production of Vivergo wheat distillers’ feed all having an effect.
“On top of that, London November wheat futures recently broke £150/tonne due to weather concerns in key growing regions worldwide, including the US, Australia and Russia.”
The Russian crop was a key focus, with spring wheat planting lagging behind and the United States Department of Agriculture (USDA) now predicting a 72 million tonne crop, down 13m tonne from last year.
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“The UK wheat spot price also remains strong, with plenty of buyers competing for dwindling old crop supplies, and the weak sterling limiting imports.
“Most energy feeds have been affected, with early summer wheatfeed, for example, about £25/t higher than in January, though still a good option for starch."
She added other options included biscuit meal and sodawheat while soya hulls were the main dry feed option for digestible fibre.
Wheat-gluten moist feed and draff were ’worth considering’ for moist feeds.
Liquid feeds were also featuring strongly, with the high protein distillery syrups and urea-based cane molasses blends offering an alternative.
“Protein prices are definitely higher than farmers have come to expect in recent years,” Ms Bradley added.
“But there is also considerable potential for prices to go even higher, and that risk needs to be taken into account.”
Despite a 2m tonne rise in predicted Brazilian soyabean output to 17m tonnes, the USDA estimate for Argentina is down to 39m tonnes, from a high of 53m tonnes, and the market view was closer to 35-37m tonnes.
Heavy rainfall was now hindering harvest, and a ship collision has put one of Argentina’s main export berths out of action for 12-18 months.
Ms Bradley said: “Soyabean crushing plant fires, striking plant workers and reluctant farmer selling are only adding to the pressure on supply.”
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