Good-value feed as demand drops
By Olivia Cooper
STRAIGHTS markets have been extremely quiet for the past two months, even though soya prices have fallen almost 15/t since early November.
Charles Waldron, of Mole Valley Farmers, says after a very busy summer, demand has dropped away steeply towards the end of the year.
“Foot-and-mouth has obviously had an effect, and caused a slip in calving patterns. The autumn grass was also extremely good, so less feed has been required.
“Soya and maize gluten are particularly good value for money, with Argentinian soya falling 14/t, to 136/t ex-port,” he says.
“Maize gluten has fallen about 5/t over the same period, to 77/t collected from Avonmouth.”
The values have fallen mainly due to world market movements, with a record South American crop and slow US exports weighing on prices.
But rapemeal has remained firm, at about 110/t ex-store, as domestic supply is limited.
Forward markets look attractive, and many producers are already locking in to about 50% of their requirement.
Brazilian soya is worth 133-141/t ex-store May-October, and rape prices are also lower, at 85-113/t for the same period, compared with a spot value of 110/t.
Meanwhile, brewers grains are in tight supply, as breweries complete their Christmas brew.
But pressed sugar pulp is plentiful, and will remain so until sugar-beet factories close at the end of February.