Spot ration costs reached a four-year low this month, following a further weakening of soyameal prices.

Although average UK feed wheat prices have edged forward by around £4 a tonne since February, a sharper fall in soya values has pushed ration formulation costs down overall.

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Global soya prices have come under more significant pressure as the South American crop descends onto the market.

The UK average HiPro price has slipped by £40 over the last two months, down to £384/ t.

This is the first time it has dropped below the £400/t mark since the end of 2022.

Wheat

For now, world wheat prices look set to follow a steady pattern in the coming months, unless an unexpected shock takes place.

Since the start of the current marketing year (in July), global wheat prices have shown the least volatility for several years, moving in a range of £20/tonne from low to high, where they are currently sitting around the middle.

Although the overall supply balance is thought to be finely balanced moving forward, any unfavourable reports of weather conditions in Russia and Europe could upset the status quo.

The maize trade can also have knock-on impacts on wheat prices, but globally this market looks well covered and forward indicators look bearish for prices.

Soya

The soya trade is currently dominated by the large South American crop.

With that safely gathered in, attention now turns to North America and how the weather will affect its progress. Current predictions are that the planted area will be higher this year.

The final factor is how demand from China will pan out, where the risk of lower shipments may undermine prices.

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