Commodity Market Report 21st October 2020

Soya

• Prices remain higher week on week due to continued buying from China and Funds increasing their long term position.
• The market has steadily climbed for the last 6 - 7 weeks and is up around £80 for Nov/Apr and £50 up May/Oct.
• USDA announced 132 million tonnes of U.S. soybean to an 'unknown' buyer.

Rapemeal

• Availability remains tight with Erith still not up and running.
• Any surplus is being pulled in from Europe to keep up with demand.
• Soya markets are continuing to prop up prices.

Distillers

• Corn up again this week following the trend. Tight availability until Jan 2020.
• Contact us for prices.

Fibres

• Argentinian farmers are still refusing to sell their soya beans. Holding the beans is the farmers only hedge against a devaluing currency.
• President Fernandez said he would not devalue the Argentine Peso.
• Home grown sugarbeet prices are still withdrawn due to the uncertain crop size.
• Imported sugarbeet prices up again by £12 this week as the demand continues and there is a shortage of supply.
• Contact us for prices.

Grain, Maize, Wheatfeed, Biscuit meals and Bread

• Chinese buying continues to support global grain markets.
• Concerns continue over the dryness in key grain producing regions. Rain is forecast for southern Russia and the U.S. plains, but will it be enough?
• On the 8^th of October the UK signed a free trade deal with Ukraine, this has the potential to be significant for UK grain imports.
• This week wheat futures reached the highest point since December 2014.
• Reportedly Sudan is working to acquire 1 million metric tonnes of wheat through U.S. assistance but details are vague.

Fertiliser

• Nitrate prices have firmed on the international market since the summer and are forecast to continue into Q1, considering UK post Brexit tariff proposals.
• CF terms are now out and show a reduction back to late summer pricing, due to the lack of take up.
• Record wheat plantings are forecast as drilling moves closer to completion, suggesting a large N application market.
• The break-even ratio (cost of N divided bu wheat value in p/kg) is at a long-term low. Historically, this is a clear signal for making nitrogen purchases.
• Contact us for prices.

Forage report

Grass

• Planning your spring grazing?
• Order a free sward stick so that you can measure your swards in the spring to maximise grazing potential.

Maize

• Bare ground after maize harvest?
• Using a catch or cover crop provides not just additional valuable forage but also prevents leaching of valuable nutrients.

Additive

• Still have maize to harvest? Find out about our maize additives.
• Dry matter losses are avoidable if the maize is stored, clamped and managed correctly to prevent aerobic spoilage.
• Place a maize additive order and receive a free additive shaker bottle.

Market Prices 21/10/20

All prices Ex Port, subject to change without notice, please ring for quotes.
 

Weekly Trend

• £/$ 1.30513 - Sterling up
• £/Euro 1.18564 - Sterling up
   

Red = Price Firmer
Green = Price Lower
Black = Price Same

The information contained herein is taken from sources we believe reliable, ForFarmers does not guarantee that it is accurate or complete and should be used for information purposes only. Market comments are the opinion of the author, and are not capable nor intended to create any legally binding obligations on either party.