Hopes of cheaper protein after US harvest

By Olivia Cooper

PROTEIN prices could fall after the US soya harvest is completed in early November, says Robert Holden of Straights Direct.

“The US soya market is in the grips of a volatile weather market, but the fact remains that they have a record acreage planted.

“Yields look like they will be lower than anticipated, but production will still be up on last year,” he says.

It has been reported that the next three weeks will set the price for winter, as the soya crop is coming into the crucial pod-setting stage.

“If the crop becomes stressed we could see 200/t ex-store this winter,” says leading animal feed manufacturer BOCM Pauls.

Mr Holden advises that some forward cover should be taken until December, to insure against the fluctuating prices.

But although spot prices could still be high in January, he thinks that values further forward could be much lower as the USA looks to export its surplus stock.

“There is a theory that rape meal will also be cheaper, as crushers make the most of better oil prices and increase their output, creating a surplus of meal.

“But demand for proteins is so strong I think it is pretty unlikely that they will be giving it away,” adds Mr Holden

Hi-Pro soya has dropped almost 5/t this week, to 180 delivered on-farm for August/October, following better weather forecasts in the US.

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