ANOTHER fortnight of rising raw material costs has now pushed feed prices towards record levels.
With global indicators for all key grains and oilseeds now set to ‘bullish’, the same factors driving prices at the end of 2020 have, if anything intensified in recent weeks, especially in the case of soya.
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Soyameal has hit an all-time record of £466/t in the UK, some £8/t-10/t higher than the previous peak in August 2012.
Feed wheat has also advanced to within sight of its previous UK record, reaching £203/t, compared with £213/t in the summer of 2012.
Forecasts are predicting that UK closing stocks of wheat could be the lowest for some 37 years, so dependence on imports means that prices are set to mirror global trends.
World wheat markets remain well supplied on paper, but global prices are still being driven by the situation with maize.
The latest boost to maize prices came from the most recent USDA forecast for world supply and demand, predicting lowered output and high demand.
Soya prices are still being bolstered by worries over the dry conditions in South America, following news that yields are down, for example by 10% in Brazil’s Mato Grosso.
Lastly, agreed sales of US soya to China by the end of last year were three times the year before, reducing carry-out stocks.
GRAIN MARKET DRIVERS
⬆ WHEAT – Wheat still reacting to concerns about maize supplies
⬆ SOYA – Continuing dry conditions in South America now reducing yields in some areas.
⬆ SOYA – High demand from China