The expected impact of the huge soyabean crop in South America has not materialised, with UK soyabean meal prices remaining high.
Prices have started to creep back, with a £15-20/t discount now available for June delivery, but any substantial price movement may now have to wait until the autumn.
Expect better protein prices from here on, but don’t expect massive discounts to appear overnight. With summer deliveries of soyabean meal available in the £260-270/t bracket – better than the same time last year – it makes sense to secure at least 50% of summer requirements by the end of June.
The main reasons for the lack of movement in the markets are the ongoing weakness of sterling, increasing freight costs and a continuing lack of supply from South America.
Argentinean farmers are also reluctant to release any significant volume of the recent record soyabean harvest onto the market with inflation in Argentina officially at 10%. This means supplies into the UK continue to remain tight.
Q For more information on current feed markets follow the Feed Watch series online at www.fwi.co.uk/feedwatch