Soya prices still rising

By Olivia Cooper

US soya markets continued to rise this week, with Brazilian soya up 5/t, but the dramatic rises of the week before were not repeated.

Following last weeks meteoric 10 rise to 189/t, it was expected that a new week would bring some downward adjustment.

Instead, prices held firm, making some slight gains, according to traders.

The US Department of Agriculture released a report on Wednesday (11 July) confirming that soya stocks are down, and reduced the carry-over by a further 95 million bushels.

Continued hot and dry weather is forecast in midwest America, contributing to the bullish sentiment.

Home-produced rape meal has crept up another 2/t on the back of a strong soya market, to 121/t for spot delivery.

“There is likely to be a break in the market before too long,” says trader Charles Waldron from Mole Valley Farmers.

“The funds have over-bought and will be looking to liquidate their position, which will steady the market again.”

Tony Longdon, trader for BOCM Pauls, agrees but says that he cant see a big drop in prices for the time being.

Imported maize gluten has also risen by 2/t to 98/t spot, but is up to 5/t firmer from October onwards.

“Prices for molasses should be available next week, but sugar beet will be in short supply this year,” says Mr Longdon.

He suggests that it may be worthwhile locking into feed contracts early, on a “first offer price” basis, as sugar beet will need to be imported from Europe.