The onward march of wheat prices continued apace during November, setting new records for UK feed wheat.
At the same time, soyameal defied predictions and showed a net gain in recent weeks.
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Inevitably, ration costs climbed again, with our Basic Layers’ Ration approaching its previous record set in January, moving up £12/t to £298/t.
That previous level of £302/t had been set when soya prices briefly escalated to virtual panic levels, whereas these latest ration costs could have a more enduring quality.
Last week the UK average ex-farm price for feed wheat hit a record of £226.50/t, surpassing the previous record by £10/t, set in December 2012.
Tight demand and supply
At these levels, the price trend for wheat is now seen as neutral, with a possible marginal upward pull.
“Fundamentally, nothing has really changed with the wheat story. Tight demand and supply are keeping prices elevated,” said Humphrey Feeds.
Despite expectations of a softer tone to the soyameal market, spot prices continue to be volatile, rising sharply one week and then down the next.
At one point in late November, the UK average for HiPro rose £25 to £393/t, but in the latest week, it dropped back £11 to £382/t.
This still leaves it up £14/t on the month and at the upper end of its range of the past nine months.
The current outlook is still regraded as bearish for prices.
Here, too, the fundamentals have remained unchanged since last month.
Currently, the crop in South America is doing well, and demand from China is expected to slacken in coming months.
Short-term, soyabeans will continue to sit in volatile territory,” said the AHDB.