Commodity Market Report 20th May 2020

Soya

• US plantings at 53% v’s 38% 5 year average.
• Export inspections this week in the US came in at 352kmt.
• The Brazilian Real rallied 2% on Monday giving support to US beans.
• July soybean futures settled 2½¢ lower at $8.42½. November soybean futures closed 2½¢ lower at $8.50¾.
• No demand for beans from China so far this week.
• On monday, the large rally in the U.S. stock and energy markets helped rally the corn and soybean markets.

Rapemeal

• Rape EX Erith May £208/T, June/July £204/T, Aug/Oct £194/T.

Distillers

• With the slight relaxation of the lockdown we should see a surge in the demand for fuel, hopefully propping up the ethanol market.
• Fuel consumption in the US was up 46% from where it was in the first week of April.
• It is estimated there are more than 60 ethanol plants sitting idle today and close to 80 facilities that are still operating at a reduced rate.
• Buyers have increased interest in new crop maize distillers EX Portbury Aug/Oct£191/T.
• We are still seeing a lack of Buying on old crop. May EX Portbury £222/T, June July£212/T.

Fibres

• May's prices for hulls have come back £10/T in the last week, with an increasing number of people taking summer cover.
• Hulls have a £32/T discount to sugarbeet.
• There is a limited amount of home produced sugarbeet available. Please contact us for prices.

Grain, Maize, Wheatfeed, Biscuit meals and Bread

• Nearby wheat markets haven’t moved over the last week, with new crop drifting slightly lower.
• U.S. maize planting passes 80% well above the five year average of 71% but below the trades’ expectation of 81%.
• Meanwhile, 43% of the nation’s corn has emerged vs a 40% five-year average   
• Biscuit meal prices have stayed stable over the last week.
• Wheatfeed prices have eased over the last few weeks, with buyers starting to take an interest. Spot pellets EX midlands £123/T.

Forage report

Grass

• How are your grazing paddocks performing - do any need reseeding to improve yield and quality? Find out more about TOPGRASS here.

Additive

• Do you have your additive in stock ready? Reduce dry matter losses, heating and waste. improve milk production or liveweight gain. We have next day delivery available.

Root crops

• Looking for an alternative forage in livestock diets or a supplement to grass silage? Root crops such as stubble turnips, forage rape, swedes, fodder beet or kale can all off fill a forage gap.  

To find out more about maximising your forage or for prices please contact us.

Fertiliser

• The Indian tender for urea was confirmed at 650,000T sold basis having left load port by second half of June.
• This tonnage is well down on the rumoured 1.75mln/T required, with considerable resistance by producers to meet the price levels set and traders not liking the newly introduced less favourable payment terms. Another tender will now have to take place in the second half of June.
• Pricing was too low for Chinese urea to participate. Most tonnage came from North African, Middle Eastern and Black Sea manufacturers, the traditional origins of European urea who are about to enter the market.
• Prices would now appear to be stabilising in the region, with manufacturers increasing levels after clearing a level of stock hanging over the market. A weaker £/$ is negatively impacting FOB values, also adding additional support to levels which have now bounced by $5/6t on the week.
• New season ammonium nitrate prices are being discussed and cheap gas currently will likely influence an attractive start level. With an increased nitrogen market forecast next season with larger plantings expected, we recommend planning ahead.

Market Prices 20/05/20

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

Weekly Trend

• £/$ 1.2245 - Sterling firmer
• £/Euro 1.1195 - Sterling lower
   

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.