The latest episode of FeedCast is brought to you by James Barker, our Raw Materials Buyer. As usual he will be providing an outlook on the protein, mid protein and cereal markets.
James starts by discussing the changes we have seen from Friday 16th June in regards to the weather, the markets have risen globally for various different products. The soya meal market, has seen a differential of pricing on the day between 2 to 3 pounds which has become relatively normal. However on Friday, a lot of funds decided it was the right time to cover in shorts that had been developing. With the weather remaining hot and dry in the key growing states we are seeing an increase in price by £12-£20 depending on where you are looking / how far you are looking forward. Soya is the main product on the upside at the moment.
Moving to rapemeal, there is a distinct lack of offers available for June and July. With the crushers switching to different products other than rapemeal in Europe it is having a big effect on the meal that we are seeing. For Aug-Oct the premium into the new crop has now arrived because of the lack of availability for June and July, meaning we are looking at around a £40 premium from where we were a few weeks ago. We are continuing to see alternatives to rapemeal such as distillers, both Ensus and Vivergo products are still available.
We have seen the corn futures have rallied quite heavily however things such as maize and hulls haven’t been affected to much with the forward markets remaining relatively unchanged. It is worth looking at any opportunities for nearby June and July to get any cover if needed.
Looking now at cereals, we have settled above the Nov futures on £200 which has felt within the trade like a target that we have been aiming for the last month. There is still the ongoing issue regarding Russia and Ukraine, with this we are still seeing old crop prices remaining at very good value. Demand is feeling sluggish due to people not wanting to sell tonnes are the current prices in the last month or two. With the grain deal still being discussed its worth being cautious with your cereals and not necessarily going to long or to short at the moment.
As we mentioned earlier there are still alternatives available such as Vivergo. We also have Novapro and Expeller from Yelo which is home produced and competitive in regards to pricing.
Final thoughts from today are that the markets have rallied heavily from the 16th June and we are waiting to see if this now continues. Hopefully we can see this fall back from next week but its something to keep an eye on.
As always get in touch with your sales representative or contact us in the office if you have any queries.
Legal Disclaimer:
Please note: The information provided during this podcast has been prepared for general informational purposes only and does not constitute advice. The information must not be relied upon for any purpose and no representation or warranty is given as to its accuracy, completeness or otherwise. Any reference to other organisations, businesses or products during the podcast are not endorsements or recommendations of AB Agri or its affiliated companies. The views of the presenter are personal and may not be the views of AB Agri. The contents of this podcast are the copyright of AB Agri.
Continue reading...
James starts by discussing the changes we have seen from Friday 16th June in regards to the weather, the markets have risen globally for various different products. The soya meal market, has seen a differential of pricing on the day between 2 to 3 pounds which has become relatively normal. However on Friday, a lot of funds decided it was the right time to cover in shorts that had been developing. With the weather remaining hot and dry in the key growing states we are seeing an increase in price by £12-£20 depending on where you are looking / how far you are looking forward. Soya is the main product on the upside at the moment.
Moving to rapemeal, there is a distinct lack of offers available for June and July. With the crushers switching to different products other than rapemeal in Europe it is having a big effect on the meal that we are seeing. For Aug-Oct the premium into the new crop has now arrived because of the lack of availability for June and July, meaning we are looking at around a £40 premium from where we were a few weeks ago. We are continuing to see alternatives to rapemeal such as distillers, both Ensus and Vivergo products are still available.
We have seen the corn futures have rallied quite heavily however things such as maize and hulls haven’t been affected to much with the forward markets remaining relatively unchanged. It is worth looking at any opportunities for nearby June and July to get any cover if needed.
Looking now at cereals, we have settled above the Nov futures on £200 which has felt within the trade like a target that we have been aiming for the last month. There is still the ongoing issue regarding Russia and Ukraine, with this we are still seeing old crop prices remaining at very good value. Demand is feeling sluggish due to people not wanting to sell tonnes are the current prices in the last month or two. With the grain deal still being discussed its worth being cautious with your cereals and not necessarily going to long or to short at the moment.
As we mentioned earlier there are still alternatives available such as Vivergo. We also have Novapro and Expeller from Yelo which is home produced and competitive in regards to pricing.
Final thoughts from today are that the markets have rallied heavily from the 16th June and we are waiting to see if this now continues. Hopefully we can see this fall back from next week but its something to keep an eye on.
As always get in touch with your sales representative or contact us in the office if you have any queries.
Legal Disclaimer:
Please note: The information provided during this podcast has been prepared for general informational purposes only and does not constitute advice. The information must not be relied upon for any purpose and no representation or warranty is given as to its accuracy, completeness or otherwise. Any reference to other organisations, businesses or products during the podcast are not endorsements or recommendations of AB Agri or its affiliated companies. The views of the presenter are personal and may not be the views of AB Agri. The contents of this podcast are the copyright of AB Agri.
Continue reading...