By FWi Staff
STRAIGHTS prices fell back following their dramatic rise a week ago.
Perhaps the most significant factor in the fall was the over-reaction of traders to the US Department of Agriculture crop report last week.
The leap in prices of soya last week were directly attributed to the release of the USDA monthly report indicating that soya yields would not be as high as originally thought. “However, traders overreacted to these forecasts as harvest is still predicted to be one of the largest on record,” said Ian Tremain of Devon-based Mole Valley farmers.
The strength in the value of the Pound, along with increased purchasing, which has since fallen off, have also helped bring prices back down.
Soya bean meal hi-pro slumped £4 to £131/t this week, while Brazilian pellets and meal plummeted £5 to £120/t. Maize gluten imported pellets were a further ingredient to suffer falling £2 to £76/t.
But other products appear to have settled, with maize gluten home-produced pellets inching up £2 to £79/t. Molasses firmed along with home-produced rapeseed meal, nudging up £2. Supergrains crept up £1.50/t to £27.50 and both vitagold (25t tipped) and wheatfeed pellets rose a further £2.
“The market will now be exchange-lead,” said Mr Tremain. “And subject to the exchange remaining stable over the coming weeks prices should now remain relatively fixed.”