Straights feed prices hold firm, but remain down on the year

Straights feed markets have stabilised in recent months after a fairly weak year for prices overall.

Despite some recent support, rape meal remains £40/t down on the same week last year, while maize gluten meal and HiPro soya bean meal are down by £59/t and £48/t on the year, respectively.

Demand from dairy and livestock producers has varied, with some reports of buyers being slightly hesitant to buy due to cashflow concerns, especially in the dairy sector.

See also: Wheat market outlook bearish despite poor autumn plantings

Animal feed demand accounts for almost half of total wheat use and about 60-65% of barley use in the UK. This means that the price of different feed ingredients included in compound feeds can also influence demand and prices for cereals used in these products.

Simon de Jongh, trader at Straights Direct, said markets haven’t really moved a lot recently and are fairly stable at the moment, with prices firm.

Most ingredients are generally freely available, according to Mr de Jongh. However, rape meal out of Erith has been very tight due to some loading issues.

This means there had been a short-term premium for rape meal in early December, but it is now available at a cheaper price again in January. However, prices are likely to increase as the new year approaches, he suggested.

“Soya has firmed up a fair bit over the past three weeks, but is fairly static now.

“There’s plenty of home-produced sugar beet about, though it’s looking a little bit expensive against imported. People do consider it a premium product, so it’s not outrageously high, but slightly higher.”

Demand

Mr de Jongh added that there is still some good demand from buyers, but the whole industry is much smaller than it used to be.

Alastair Nottage, feed and equipment specialist at AF Group, said some purchasers are playing the averages and placing more regular  smaller orders, rather than large orders.

Mr Nottage also said rape meal is hard to get hold of, and tighter availability is supporting prices.

Wheat distillers are hard to find and proteins are also supported, he added.