Farmers hold out for cheaper feed

By FWi staff

THE straights market remains quiet with little buying as farmers hold out for cheaper prices.

“Values are higher than they were a year ago, and buyers still view them as too expensive,” says David Clarke of KW Alternative Feeds.

Soyabean meal is currently fetching 174/t on the spot market, 12 more than a year ago.

Rapeseed meal is 27 more expensive at 132/t, and maize gluten is 16 dearer at 99/t.

Farmers are also buying more on the spot market, rather than forward, as prices are so unpredictable, adds Mr Clarke.

“Up until a few years ago there was a steady stream of shipments which helped to keep prices steady, and more straights were bought forward.

“But demand has since fallen and shipments have been cut back, which creates gaps in supply levels. When this occurs the price goes up.”

There is room for prices to come down a little, reckons Mr Clarke, but generally they will remain fairly steady.