Feed Outlook* – May 2017

First published:

Length: 100 words; >1 minutes

Downward pressure on protein feed prices continues, but there’s still considerable potential for volatility so forward contracts will be key to risk management.

Recent price reductions have been limited due to strong global demand for soyabeans and reduced farmer selling. Any delay to the remaining Argentinean harvest could cause prices to rise, with movement likely exaggerated by investment fund buying.

Greater savings are possible by switching to alternative rumen-bypass feeds like ProtoTec than waiting in the hope that soyabean meal prices drop further, particularly as the start of new crop plantings in the United States signals another period of uncertainty.

“Greater savings are possible by switching to alternative…feeds like ProtoTec…”

Key facts & figures:

  • Argentinean soyabean harvest progress at 49%, Brazilian harvest near complete

  • Global soyabean production to be 9.3% higher than last year at 345mt1

  • But much of the extra production already factored in to forward prices

  • DUP2 in soyabean meal still 10% more costly than in ProtoTec

  • 40% CP3 Proflo wheat distillers’ syrup a higher energy alternative to rapemeal

  • Wheatfeed a highly competitive energy source against cereals

1 Million tonnes
2 Digestible undegraded protein
3 Crude protein

 

* Prices correct at the time of writing and subject to change. Unless otherwise stated, all prices quoted are for 29t tipped bulk loads delivered on-farm within 50 miles of origin.

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