By FWi staff
OILSEED rape prices continue to rally strongly on the back of growing concerns over BSE in Europe and the ban on MBM in animal feed.
The announcement sent Chicago soyameal futures to contract highs of $213.63, up $24 since November, and European prices 10% higher last week, as demand was expected to rise significantly, reports the Home-Grown Cereals Authority.
UK feed ingredient prices for soyameal have also risen over 20 since early November, to about 192/t.
“In the short term, prices are likely to remain high as producers cover their immediate requirements.
“But in the longer term, there could be less beef to feed leading to less demand,” says the HGCAs Heike Hintze-Garres.
Banks Agriculture also believes that the recent price rise will start to slow down.
“There is already evidence of an increase in white-meat consumption, which creates an additional demand for feed cereals rather than proteins, as well as the likely fall in beef numbers,” says Banks.
It should also be noted that the oil market has actually traded down this week, and it has been the meal that has pushed prices up.
And the majority of the crushers margin comes from the oil rather than the meal.
Wheat prices in the UK continue to firm with November futures up 2.60 to 72/t.
This is mainly a result of a difficult maize harvest in France and very slow progress with the UK drilling campaign.
The quality bread wheat campaign has taken another turn for the better, in response to the floods in Australia and a slow harvest in Argentina, also caused by unusually heavy rainfall, reports Banks.
Milling wheat futures for July are 81-86/t.