By FWi staff
DESPITE a steadier market for straights, a number of commodities continue to climb on the back of strong demand.
Maize gluten home-produced pellets climbed £5 to £84/tonne, while imported pellets and meal inched £2 to £84/t. Malindo palm kernel nudged up to £77/t and soya bean meal hi-pro rose £2 to £128/t.
Home produced rapeseed meal climbed £5 to £93/t and wheatfeed pellets soared, rising to £78/t.
Wheatfeed pellets have become very tight as demand has increased, said Charles Waldron of Mole Valley Farmers. “Many compounders have used it to the highest extent.
It was probably too cheap before, and prices have increased to reflect this,” he said.
The rise in gluten prices has also been demand led, said Mr Waldron. He believes that this too was very cheap, but has increased due to large scale buying in the UK as well as on the continent.
“Straights are unlikely to get any cheaper because of the high demand,” said Mr Waldron. “There is unlikely to be any shake up in prices until after Christmas, when maize gluten prices are expected to change.”
Increasing meal prices clearly reflect short-term rapeseed production in the UK, said Martin Douglas, of Cargill plc. “Rapeseed production is well sold at present, and there are a considerable number of sales made for year. Demand is strong.”
The US Department of Agriculture announcement made a fortnight ago has put a firm bottom to the market, said Mr Douglas. He believes the market will react to Chicago prices along with the strength of Sterling against the Dollar.
“UK production and sales, along with local consumption all drives the market,” he said.