US weather could see cow ration price fall

Dairy cow rations could be set to drop in price if weather in the USA remains conducive to a large soya bean crop over the next few weeks.

According to a report by DairyCo, UK prices for soya meal averaged £401/t in June – well below the peak of £440/t reached 10 months ago, but still 13% higher than last year.

“Currently, demand for soya beans is keeping pace with available supplies, which is maintaining prices,” said the report. But with record high soya plantings in the USA, and ample stocks in South America, that could be about to change.

“There is potential for prices to weaken if the US harvest meets its potential and South America does not experience further barriers to exporting stocks. However, this will be dependent on US weather during the rest of the growing season and the strength of Chinese demand.”

Over the past 12 months, farmers’ electricity and fuel costs had increased by 9.3% and 2.6%, respectively, added the report. “However, there has been some respite, with fertiliser prices falling by between 8.1% and 16.9% over the same period.”

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