LACK of progress in the current Middle East stalemate has left feed ingredients frozen at their relatively elevated price levels.
Geopolitics remains the factor that is overshadowing the usual concerns about weather conditions, and everyday world supply and demand issues.
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UK prices for both feed wheat and soya, mirroring global grain and oilseed trends, have shown some volatility in recent weeks but are currently at much the same level as a month ago.
The average price of UK feed wheat peaked in late April at £179/ tonne but has slipped back to £176. This is £10 a tonne higher than a year ago.
The Iran conflict is inflating the costs of items such as shipping, insurance, and arable costs of production. There are also worries about threats to normal supply chains.
Evergreen issues
Still in the background are the usual market factors, such as weather developments. The condition of northern hemisphere wheat crops is a main issue presently keeping prices supported, with dry weather a focus both across Europe and the US wheat-growing areas.
Currently the overall condition of the US wheat crop has been assessed as the weakest in four years, and in some parts the crop could already have suffered permanent damage.
Lately, world soya prices have been heavily governed by the fluctuating oil prices, as biofuel becomes more or less competitive with fossil fuel.
Soya
Just as in the case of wheat, soya prices peaked in late April when peace talks stalled and the Strait of Hormuz remained resolutely closed. However, the latest rumours of some progress caused Chicago soya prices to fall around $11/ tonne since the start of the week.
In the UK, HiPro soyameal is averaging £366/ tonne at the start of May, the same as a month ago, but £56 a tonne higher than this time last year.
Other factors remain benign for soya prices. US exports have been at the lower end of predictions, helping to eliminate potential worries about stocks and supplies; while US plantings are on track and the current South American crop is expected to be substantial.
