Feed prices and markets
Updated 6 January 2020
How much are you spending on feed? Changes in grains, protein and concentrate prices are updated below every month, along with a summary of the markets.
Over the course of the last month UK grain prices have generally firmed, supported by the ongoing delays to domestic drilling of winter crops. However, the result of the UK general election has seen the value of sterling firm considerably against both the euro and the dollar, reducing prices towards the end of the month.
In the last month the release of the UK cereal supply and demand estimates highlighted the high volumes of wheat, barley and oats that are in the domestic market. The large stocks of all three of these crops will limit price rises on the back of delayed drilling.
As the window of opportunity for winter planting reduces, there is an increased likelihood of a switch to spring planting. If plantings are dominated by spring barley then we could yet see further pressure for this well supplied market.
In the global market, maize prices had been under pressure for most of the month on the back of increased global supplies. However, with the US and China reaching an agreement over their trade dispute prices have surged in the past couple of days. Global wheat prices have also reacted positively to the news, with Chicago futures extending recent, new crop concern, delays.
The latest release of GB animal feed production data (including integrated poultry units (IPU) shows that total production of feed is down 4.8% year-on-year. The reduction reflects the increase need for compound feeding last season in response to the drought. Production of feed for pigs and poultry (including IPU) remains up on the whole, although there is a reduction in pig growing feed.
Barley inclusions in animal feed production are up year-on-year (6.9%), to October, while inclusions of wheat (-3.9%) and oats (-25.5%) are down. For barley, this is a marker of the low price of barley relative to other feed ingredients.
Oilseed prices have continued to rise over the course of the past month. European rapeseed prices have jumped considerably, responding to high prices for vegetable oils. UK prices have followed the gain in EU futures but have been limited by the rise in the value of sterling.
Soyabean prices had been under pressure since mid-October, responding to the overwhelming pressure of global supplies in the face of limited Chinese demand. However, with China and the US reaching a “phase one” agreement in their long fought trade dispute, prices have firmed.
Furthermore, ongoing dryness in Argentina threatens to delay soyabean plantings and impact the size of the crop.
With a shortage in domestic oilseeds this season the UK has imported a high volume of soyabeans, soyabean meal and rapeseed. The primary origin of imports of soyabeans and meal is South America.
Concentrate feed prices
Actual concentrate feed prices are available from Kingshay and Promar, although these are often based on data that is two or three months old.
Our own calculated concentrate feed prices are estimated using a mix of wheat, barley, soyabean meal and rapeseed meal straight prices.