10th July 2024 Commodity Market Report

There was a big increase in Brazilian farmer selling of soybeans last week (now 75% sold), driven mainly by a weak currency.

• Sterling is stronger against the dollar week-on-week, 1.8 cent versus $.

Proteins

Soya

• Argentinian farmer selling increasing and now 43% sold.
• Good oil demand in South America maximises crush.
• Northern US suffered floods post USDA estimates. The region remains wet.
• US soybean crop rated 68% good/excellent, +1% week-on-week, vs 64% average.

Rapemeal

• Declining European and UK production. Low early yields are being reported in France and Germany, with lowest levels of production since 2020.
• Concern about the viability of planting rapeseed as a break crop going forward.
• Plenty of biodiesel still to trade and then crushers will need to sell meal. Crush should ramp up as new crop approaches.

Maize Distillers

• North American cattle demand declining due to gradual switch to summer diets.
• US ethanol production at 10645 tbpd, +2% week-on-week and consistently strong. Margins remain positive.

Fibres

Palm Kernel

• Northern hemisphere market remains very quiet, with impact of EUDR unknown.
• 2024 production levels are expected, as a minimum, to hit average levels.
• Crush margins are above $11, so production expected to be strong.

Soya Hulls

• Market direction driven by liquidity and without sustained volume. Argentine farmer selling prices have some underlying support.
• Argentine crop unchanged at 50 million tonnes, double last year’s figure. This bodes well for good hulls production.

Sugarbeet

• EU sets higher tariffs on Russian/Belarusian sugarbeet pellets, effective from July 1^st .
• Russia has large exportable surplus with fewer friendly destination homes.

Cereals

Wheat

• Wheat harvest pressure from the Black Sea and US.
• Russian prices down $10/t week-on-week.
• US winter wheat harvest 63% complete versus 56% average pace.
• UK wheat at 56% good to excellent, versus 76% last year.

Barley

• 2024/25 estimated bigger crops for global at 150 million tonnes, +8 million year-on-year.
• EU 2024/25 estimated crops at 54.5 million, +6.8 million.
• UK 2024/25 estimated crops at 7.5 million, +0.5 million.
• Big Spanish crop expected and self-sufficient.

Maize

• Heat stress building in Black Sea.
• Ukraine 2024 maize crop 14 million tonnes below peak before war.
• 2024/25 US ending stocks pegged at 53.4 million tonnes, representing a six year high.
• Midwest weather remains favourable for maize pollination and Brazil’s Safrinha harvest is 65% complete.
• US maize crop rated 68% good/excellent, +1% week-on-week, vs 67% average.

Performance Products

• Fluctuating grass quality can result in omega-3 deficiency, linking to poor performance. Lintec can help make up any shortfall, being a high omega 3 product.
• As well as supporting fertility by boosting hormones involved in oestrus activity and the prevention of early embryo loss. Lintec can also reduce inflammation; alongside these benefits it is proven to reduce methane emissions.
• Restore nutrient balance after calving with Translac HydroBoost.
• Translac HydroBoost contains electrolytes, calcium and energy, everything a cow needs to quickly restore its nutrient balance after calving and to increase its blood calcium levels.
• Translac HydroBoost also stimulates dry matter intake after calving which helps in maintaining good milk production and body condition.
• Supplying the correct amount of vitamins, minerals and trace elements is important for optimum production, health and fertility.
• Deficiency or excess of minerals can reduce performance and seriously affect animal health. Get in touch with your account manager to make sure your ration is balanced efficiently.

Fertiliser

• The global urea market has currently stabilised at its recent highs and, aside from a lull in demand, shows no real signs of softening.
• Egyptian production is slowly coming back online. Urea producer Abu Qir has confirmed a gradual return to manufacturing. However, production at full capacity remains a distant possibility.
• China is predicted to export virtually no urea until after August, leaving lower tonnes available for the Indian tender. Traders think it unlikely that tonnes will be supplied from the Black Sea to India, but this cannot be ruled out as demand elsewhere is thin.
• AN markets are also very quiet as market players appear to be looking to urea for some price direction. In the UK, CF Nitram 34.5% prill remains available for spot and October - November delivery.
• Following the spike in phosphate prices over the last few weeks, they now appear to have settled at higher levels. MOP prices remain flat.

Forage

Wholecrop Inoculants

• With the start of wholecrop harvest, do you have your preferred inoculant in stock?
• Advantage of inoculants include:
  • Reduced dry matter losses.
  • Helps minimise nutrient loss.
  • Provide more digestible neutral detergent fibre - NDF and crude protein.
  • Generate more lactic acid and reduce ammonia production.
  • Inhibit mould formation and therefore reducing mycotoxin risk.

• Inoculants available:
  • Ecocool – Aerobic stability (current offer buy 11 units get one FOC).
  • Ecocorn – Aerobic stability plus potassium sorbate, inhibitor of yeasts and moulds.
  • Sil – All 4x4 – Faster fermentation with aerobic stability and contains an enzyme.
  • Pioneer 11A44 – Suitable for higher dry matter crops. Rapid react option.
  • Pioneer 11GFT – Fibre technology.

Grass Reseeding

• Do you have grass leys that are not performing at their peak? Would they benefit from reseeding or overseeding?
• Contact us to discuss specific options according to your requirements.
• View our grass leaflet here.

Sustainable Farming Incentive

• Are you wondering what your best options are with regards to the Sustainable Farming Incentive (SFI)? Contact us to discuss your options.
• Looking at SAM3 herbal leys? We have a number of options available to ensure that production is not compromised.
• Request a copy of our environmental brochure.

Roots

• Brassica crops offer an additional extended summer feed option or can be used for finishing lambs and winter keep.
• Stubble turnips, forage rape, swedes, hybrid brassicas and root mixes are available from ForFarmers.
• You can find out more about our range of forage root crops here.

Co-products

• Are you looking for a moist feed supply offering consistency that you can rely on? One of our moist blend products could be the answer.
• This summer, we currently still have availability of our moist blends SelcoPlus and AmyPlus.
• Our moist blends are manufactured to order, offering consistency of supply all year round. You’ll always have peace of mind that your delivery will arrive in line with your feeding requirements when other products may be in short supply.
• Ideal for driving intake, our nutrient rich moist blends are a great option to help balance a variety of forage stocks, including those with low energy.
• With two moist blend options to choose from, delivery is available nationwide in full 28t artic and 20t rigid tipped loads.
• Both spot and forward contracts are available. If you’re interested in pricing and availability, please contact a member of our team.

Weekly currency trend

£1.282 /$ - Mixed

£1.184/Euro – Mixed