17th July 2024 Commodity Market Report

Stronger sterling is making imports of grains into the UK look more competitive and will cap prices.

• Sterling is stronger against the dollar week-on-week, 1.4 cent versus $.

Proteins

Soya

• Soya beans have fallen to their lowest levels in four years, with strong US crop prospects.
• The USDA report was neutral for soya. US old and new crop carry outs lowered slightly.
• Argentine 2023/24 crop down 5 million tonnes.
• Brazilian 2023/24 crop left unchanged at 153 million tonnes.
• Funds close to record short so susceptible to a bounce.
• China said to be uncovered for Sep-Feb 2025.
• US weather remains a potential bull, nothing threatening for now. August is key month for yield.

Rapemeal

• Declining European/UK production and low early yields are being reported in France and Germany. Lowest production since 2020.
• Concern about the viability going forward of planting rapeseed as a break crop.
• Rapeseed crush will need to decline unless the seed outlook improves.
• Potentially 8 million tonnes of seed imports required into Europe. Margins look better on soya crush.
• Premiums built into 2025 prices to cover EUDR risk. Now pricing ~73 % of the price of soya. Reluctant to sell February/April.
• Improving outlook in Canada (largest rapeseed exporter) with a 20 million tonne crop and rising. Supplies from Australia also look better than expected.

Maize Distillers

• US ethanol production remains consistently strong, up 2% week-on-week and 0.4% year-on-year.
• Margins are excellent and incentivizing production. FOB prices -$14 since June.

Fibres

Palm Kernel

• June production drops 12% versus May.
• 2024 expected to be average production year overall.
• Crush margins remain strong enough to incentivise production.

Soya Hulls

• Market direction driven by liquidity and without sustained volume, Argentine farmer selling prices have some underlying support. Some improvements in liquidity seen recently.
• Overall global demand lower and this could drive crushers to look for spot demand if stock levels begin to climb.

Sugarbeet

• In general, weather related delays to plantings raise concerns over negative yield impact for 2024 campaign (October onwards).
• Overall global supplies adequate, with lower demand.

Cereals

Wheat

• Friday’s USDA report was bearish for wheat. Global supplies lifted 5.4 million tonnes and end stocks up 5 million tonnes, as increases in consumption fails to offset the extra supplies.
• EU crop and end stocks cut by 0.5 million tonnes.
• IKAR raise the Russian wheat forecast from 82 to 83.2 million tonne, aligning with the USDA’s 83 million tonne.
• US wheat close to 74% harvested, well ahead of pace and crop conditions improve week-on-week.

Barley

• UK spring barley crops have potential, but we need some sunshine over the coming weeks to boost this crop.

Maize

• The USDA report was neutral for maize. US end stocks reduced and well below average expectations as US demand outweighs production increases.
• US yields based on 30-year trend data but it’s July that the crop is made. The August WASDE will give a more accurate figure.
• Weather in the US remains ideal. Corn crop conditions reported on Monday night at 68% ‘good to excellent’ (five-year average: 62 %).

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.

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.

Autumn Cereals

• Many options are available for autumn sowing. Please contact us to discuss variety options.

Co-products

• Are you looking for increased energy in animal rations and can you feed liquids? WheyMore is a lactose rich high energy liquid which is easy to use.
• Offering a very cost-effective source of sugar, WheyMore is highly palatable and can aid intakes.
• WheyMore can be a valuable addition to livestock diets. It mixes well into TMR or PMR rations, aiding ration structure and reducing sorting.
• WheyMore is collected from our supply site in Scotland and delivery is available in full 28t tanker loads across Scotland and the North of England.
• Should you have interest then please contact a member of the team for more information.

Weekly currency trend

£1.296/$ - Mixed

£1.189/Euro – Mixed