Your AF feed update

• Soya prices were easing through April into mid-May - partly due to ceasefire between Iran & US which brought crude oil prices down, bringing vegetable oils down with it (therefore soya & rapeseed prices drop). It was also an ideal start to soya planting in US, with an increase in acreage due to it being cheaper to grow soya than corn (less fertiliser required). Spot/June prices were at a premium to July onward due to delayed harvest in Argentina delaying new crop shipments from there to the UK (tighter supply). Rape meal came lower, in part tracking soya, but also as Erith came back online after a lengthy shutdown.

• There was a bounce in prices mid/late May for soya following the agreement between US & China that China would import $17 billion per year of US agricultural goods, boosting US prices. Rape meal did not track this as it continued to try and find some demand, especially for June/July.

• Since mid-June, priced have dropped back to the levels we had in mid-May, as the US & Iran reached a peace agreement, pushing crude oil (and therefore soybeans & rapeseed) lower again. Also China has not come to buy US soybeans in a meaningful way. Rape meal tracked down, trying to keep competitive, and on occasion having a bounce of it’s own as Europe came in to buy when it got cheap enough.

• Prices have been steadier over the past couple of weeks, as the market seemed content to trade the good US crop growing conditions and have the occasional support from Chinese buying (still sporadic!).

• Going forward, we are at risk of weather premiums being built in if forecasts take a turn for the worse. Rape meal values seem more dependent on when crushers want to sell, with August/October moving higher having sold a chunk of late.

Information correct as at 15.07.26.

To discuss your feed, get the latest market information, or talk about your other livestock inputs requirements, get in touch with your AF Livestock Inputs Team.