Buying straights forward going out of fashion

By FWi staff

FARMERS are increasingly buying straights on an as-and-when basis, rather than buying forward, says David Clarke from KW Alternative Feeds.

“Its really a reflection of the industry in general,” he explains.

“In previous years, most farmers had bought in all they need for the winter by now.

“But they are now being much more careful and only buying straights when they need to. If they can make it last a bit longer they will.”

The straights market remains quiet this week, with soyabean meal (hi pro) falling 8 to 171/t and Brazilian 48% pellets dropping 6 to 162/t.

“The recent USDA figures revised the soyabean crop down but not by as much as was first thought.

“Many had built-in some protection with higher prices, thinking supply was going to be tighter. So now they have had to drop the price.”

Brazilian 48% pellets follow the same trend as the soyabean prices. “If they cant get soyabean hi-pro then they go for Brazilian,” adds Mr. Clarke.