SPOT ration prices have risen for the third month in a row after a sudden bounce in the global price of soya.

The cost of Poultry Network’s Basic Layer Ration, based on current prices for wheat and soya, rose again by £12/tonne during the past month. 

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It has now increased by £21/t since August.

Despite predictions to the contrary, soya has strengthened in recent weeks due to emerging worries about the Brazilian crop, which is still at the planting stage, along with more robust demand for US beans.

Wheat

Feed wheat is proving less volatile. Over the past four weeks, there was a minimal net decline of £1.50/t in UK feed wheat ex-farm. 

There has been little overall change in the wheat price since mid-summer.

There is some current focus on the South American wheat crop, again due to weather worries. 

However, the dominant factors are still the Black Sea situation and the expectation that feed grain supplies overall will be substantial for this coming season. 

Maize

Any hardening of global feed wheat prices is likely to be checked by an ample supply of maize.

Meanwhile, Black Sea wheat exports are still keeping the market subdued, and Ukraine has managed to maintain its humanitarian corridor for exports, albeit intermittently.

Although the US soya harvest has gone well, soya has gained £50/t since early October. 

In the short term, there has been a surge in demand for US soya, and shipments to China, in particular, are now expected to reach a record level this year, gaining 15% compared with 2022.

Longer term, there have been concerns among traders that the Brazilian crop will not be as big as expected. Planting has been delayed by too much rain in the south, and too little in the north.