Commodity Market Report 24th March 2021

Currency

• The Sterling is down week on week (1/2 cent vs. $)

Soya

• Soya has been easing over the last week.
• There are still concerns over the African Swine Flu outbreak in China and the effect on the recently re-stocked swine herd which is down 3 - 5% /mth since December.
• South America is seeing harvest pressure and the crush rate is at record highs.
• The Argentinian farmers are keen sellers.
• Brazil is looking to have a good crop with 50% harvested but some downgrading is possible on the back of previous weather issues.
• Do need to be mindful of the tight US carryout numbers – we need a 122 million tonne crop.
• The soya : corn ration currently favours planting soya in the US.

Rapemeal

• Prices have eased over the last week and have been following the soya market.
• High oil prices is driving crushing, therefore more meal.
• Possible demand pressure at turnout, especially for the summer.
• Contact us for prices.

Distillers

• US values have fallen week-on-week with an expected increase in ethanol production.
• The UK E10 mandate will increase wheat distillers production from 2022.
• Tight corn supply and demand combined with possible Chinese demand will set a floor in the market.
• Contact us for prices.

Fibres

• Markets have been fairly quiet this week.
• Soya hulls levels have been reduced for the summer on the back of the large South American crush.
• Please contact us for prices.

Cereals

• Wheat week-on-week is down with old crop -£6 and new crop -£4. Time is running out to sell old crop at a premium.
• The crops look good due to favourable weather conditions and there is lots of optimism for a good harvest.
• Maize is unchanged week-on-week.
• China has been buying (last week 3 million tonnes) and is likely to import 24 million tonnes this year.
• Planting in South America has been slow.

Fertiliser

• India tendered for 1.5 million tonnes of urea at the beginning of the week. The long-awaited tender is the first of this year and will set price direction.
• North African supply is reportedly tight. Offers remain at $400/t FOB Egypt. US urea prices support these levels, with higher demand being realised in March.
• UK ammonium nitrate producer CF has corrected NPK, N/S and AN levels to reflect the competitive pricing in the UK market.
• Phosphate prices (DAP & TSP ) have increased this week due to demand and product shortage in parts of the world.
• Contact us for prices or more details.

Moist co-products

• Are you needing a cost effective high protein organic feed? Consider Okara today.
• Okara is a co-product of organic tofu production and is a moist pulp consisting of the insoluble parts of soybean. It is high in fibre, energy and protein and contains moderate amounts of starch and sugar. Both the production process and the product is approved by the Soil Association, making it ideal for use on organic farms.
• The product is delivered in 1T tote bags.
• Call the team for current prices and availability.

Protected fats

• Palm oil prices continue to sit at record highs due to lower than expected production and stocks in the current quarter continuing the global shortage.
• Malaysian palm oil production plummeted to a 10-year low of 6.8 million tonnes in Oct/Feb 2020/21. The average yield of palm oil achieved per hectare has fallen to the lowest level in more than 20 years and going forward there is a big uncertainty on the impact of the Covid inflicted labour shortages on harvesting and subsequent crop losses.
• Supply outlook for Indonesia is more favourable with most of the anticipated growth related to recovery in yields.

Market prices 24/03/21

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

Weekly Trend

• £/$ 1.3742 - Sterling higher
• £/Euro 1.1610 - 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.