Feed costs climb as Chicago firms
By FWi staff
OILSEED rape values have been rising steadily on the back of firmer Chicago markets.
But while this is good news for rape growers, protein feed costs are climbing as a result.
“Reduced soya crop prospects in drought-affected South America and an unexpected downward revision of US soya stocks have put global soya supplies lower than anticipated,” said Heike Hintze-Gharres of the Home-Grown Cereals Authority.
As result, soyabean meal and meal values have risen to four- and 18-month highs. Despite the strong Pound, this pushed UK oilseed values up 2-3/t to about 105/t.
“The unexpected price gains on world oilseed and meal markets have raised hopes that this seasons price lows have been passed,” said Ms Hintze-Gharres.
Farmers who had been holding back waiting for better prices have been encouraged to sell, notes James Read of Glencore Grain. “Anything over 105/t is a good sale,” he adds.
But although rape values have improved, Mr Read does not believe they can climb much further.
With prices at a level where French and German imports are likely, values should not rise much further.
“It wont push prices down, but will provide a ceiling to the market,” he says.
This increase has had a direct impact on protein feed prices, with soya meal climbing 10/t in recent weeks, says Ian Tremain of Mole Valley Farmers.
He believes prices will continue to rise for the remaining winter period, underpinned by a recovery in the Asian markets.
“And all other protein commodities will shadow the price of soya.”
Farmers who have not covered their soya requirements for the winter should buy now, says Mr Tremain.
“But for the summer, look very closely at the GM issue.”
- Ruminant straights prices
- Oilseed prices
- Oilseed trends
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