Feed price quotes change hour-by-hour in volatile market
© Tim Scrivener Feed price quotes are an hour-by-hour process in a market trying to cope with huge volatility.
Like most suppliers, Natasha Edwards, livestock inputs procurement manager for buying group AF, was reluctant to give prices, but said soya had been at a massive high.
Quotes to Farmers Weekly midweek for HiPro soya were in the high £530s/t for spot delivery of a full load, up about £50/t on the week, while maize gluten put on up to £70/t over the week.
See also: Beef farmer replaces bought in protein with home grown pulses
With most customers locked into contracts at agreed prices before the conflict began, it was too soon to say whether the recent rises were prompting any changes in approach by livestock producers, said Ms Edwards.
Patrick Snodgrass runs Shropshire-based consultant Specialist Farm Enterprises, sourcing mainly compounds and blends for 60 dairy farms in two buying groups across Shropshire, Cheshire and the Welsh border.
He said what to do on future sourcing was a catch-22, and that he was having constant meetings with suppliers. “I’ve made the decision this week to buy some bits for next winter. If I get it wrong I can stand by my reasons for making that decision. The biggest worry is about potentially having force majeure called on what I have bought for the summer and next winter.”
One of the main challenges is the unknown – the £50-£60/t he thinks is built into the current market could fall away to zero or rise to £200/t. Mr Snodgrass has begun calculating costs of production budgets for the dairy farms for the new financial year and expects costs will be up by 8-10p/litre next year, given energy, fuel, feed and other cost increases.