Market Update - February 2020

Grain Marketing

Markets took a breather at the end of January after a sustained rally particularly for wheat, Coronavirus and an unexpected further delay to the US/Chins trade talks both served to calm things down. It will be difficult for things to go too far into reverse given the poor state of planting in the UK. That said, we need to be mindful that this problem is restricted to ourselves and parts of France and Germany. Globally wheat prospects look healthy enough and the upside in UK prices will be limited to the cost of bringing replacement supplies from the near continent. We have a strong export programme on old crop grains lined up, and that’s just as well as there does seem to be a lot of last years excellent harvest still to be marketed. Perhaps the end of the upward spiral on prices is a good moment to have a look in the barn and see what’s left with a view to placing it in the market soon.

Feed

Proteins - Soya prices are down on the week with the Phase One Chinese deal failing to offer much support to the market as it transpired that China are not obliged to buy any US beans. South American weather remains favourable to harvest although Brazil is still behind and reports continue to suggest that crop maturity is down. Sterling will remain volatile over the coming weeks.

Rapemeal prices are down following the easing in the veg oil markets with profit taking although the long term situation with seed shortages remains unchanged. 

Energies/Fibres- Imported maize continues to look good value against wheat and barley prices in the UK, meaning if the wheat price continues to rise, the maize price could follow and still look better value to compounders. Soya Hulls remain extremely tight and with the reduced line up out of South America following the closure of one of their major crushers, this is unlikely to change.  

Fats and Minerals - Bartholomews can offer our own bespoke mineral range as well as other traditional straights such as limestone flour, Sodium Bicarb and Urea. We also have C16 and Calcium Soap products available. These products are priced extremely competitively against other branded equivalents and with current high feed costs, these products begin to look more appealing.  

Fertiliser

Poor weather in the latter part of 2019, has put increased
pressure on demand for the Feb/March 2020 usage period. Our advice is to book
early where product is needed for application.

Want to speak to one of the team about the markets and how we can advise you? Call 01243 784171 today.