Straights go slowly while buyers wait

By FW reporters

FORWARD buying of straights is slow, as farmers opt for hand-to-mouth deals in the face of rock-bottom incomes.

Falling straights prices have also encouraged some to delay, hoping for further drops.

“Nobody really knows where the bottom of the market is,” said Ken Fletcher of Cargill.

According to David Clark of KW Alternative Feeds it is mainly spot-business and cover to the end of October that is sought.

“People are not willing to part with their money,” he said.

Soya is a good buy at present, with September/October Brazilian supplies costing about 123/tonne. This compares with a value nearer 200/t this time last year.

According to Ian Tremain of Mole Valley Farmers, farmers should source at least 50% of their needs to avoid over-exposure later in the season.

Andrew Galling of Intermol said that molasses are priced about 85/t, which marks a fall of about 10 on 12 months ago.

Mr Galling said UK buyers had benefited from increased supplies and a slump in European demand.

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