By FWi staff
SOYA prices soared yesterday (Tuesday) night following the publication of the latest US Department of Agriculture crop report.
Soya bean meal hi-pro climbed £6 overnight to rest at £140/t this morning (Wednesday). Brazilian 48% pellets and meal followed the same pattern rising to £132/t, noted Ian Tremain of Mole Valley Farmers.
The report indicated a similar story to Octobers, predicting less soya availability than originally forecast. The soya harvest is now expected to be about 2.763 billion bushels compared with the 2.769 billion forecast last month.
However, soya is vastly cheaper than it was at this time last year, said Mr Tremain. “Soya has been undervalued over recent months and prices are likely to remain firm.”
Mr Tremain advises farmers to cover at least 50% of their winter requirements now, as well as looking at costings and taking some partial cover for next summer.
In comparison to the soya market, straights appear to have settled following the sharp increases seen over recent weeks. “Prices stabilise as we go into winter,” explained David Clark of KW Agriculture.
“Shippers have sold a lot of their allocation, and one of the big shippers ran out of gluten all together this week.” This pushed imported maize gluten prices up £4 to £85/t this week.
Prices could go up even further, warns Mr Clark. “If the weather gets worse freight rates will increase pushing prices up.
“Shippers can get away with what they want.”