Feed bean prices have jumped by £8/t over the past two weeks, as buyers try to cover short positions.
Spot beans were now at around £242/t ex-farm; a considerable premium to feed wheat and soya protein, said a joint report by PGRO and BEPA.
“However, once the shorts are covered, it is anticipated the market will correct downwards.” New crop contracts for feed beans were pegged at £70 above feed wheat, with opportunities for spring plantings increasing due to the wet winter.
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Exports of human consumption beans had been limited by the strong pound, but a lack of sellers meant ex-farm prices remained firm at about £15/t over feed beans, said the report. “French crop is more actively being promoted and values are likely to fall.”
Feed pea values had also firmed, by £12/t, over the past fortnight, to about £230/t ex-farm.
“The domestic market for marrowfats remains static but there is some interest from Far Eastern importers. Stocks remain low, a situation that will continue through to 2015 at least.”
Contract uptake for the 2014 marrowfat crop was now picking up, with prices similar to last year at around £350/t, despite the weakening of other commodity crop markets.