Straights soya prices follow Chicagos decline

By FWi staff

THE UK soya market is suffering the effects of low values in the USA as the Chicago Board of Trade hits 12-year lows on meal.

Soya bean Hi-pro has fallen £8 over the past two weeks to £127/t, while Brazilian 48% pellets and meal have fallen £6 to £124/t.

These price falls have entirely reflected the Chicago market, said Cargills Martin Douglas. “Its simple supply and demand,” he said.

Buoyant supplies and an expected carryover have caused values to fall.

With a bearish market, prices arent likely to rise in the near future, said Mr Douglas.

Ideal weather conditions in South America are a further factor in briging prices down, along with low crush margins worldwide, said Ian Pickles of KW Agriculture.

“Theres a lack of demand for soya with the decreasing pig numbers, and were likely to see a difficult time for selling beans and meal on the back of this,” he said.

Maize gluten has done the opposite to soya, climbing over £10/t in the past two weeks.

Home-produced pellets now stand at £99/t as is imported pellets and meal. Home produced meal is at £95/t.

This is due to tight local supplies in the UK and Europe along with a shortage of vessels arriving from the USA.

“It has nothing to do with currency,” said Mr Douglas. “And prices should ease as the logistical problems in America improve.”

Mr Pickles agreed saying that physical shortages were the main cause behind the recent price increases. “But the market will come down,” he said.

Prices were too high in the first place, said Charles Waldron of Mole Valley Farmers.

But supplies are now coming through and values should come down as we move through February, he said.