22nd May 2024 Commodity Market Report

Wheat prices have continued to be volatile as weather in Russia and Europe is the main watchpoint.

• Sterling is stronger against the dollar week-on-week, 1.6 cent versus $.

Proteins

Soya

• 85% of the beans planted in flood-hit Rio Grande do Sul has now been harvested.
• Concerns over the Brazilian and Argentinian crop continue to dominate market sentiment.
• USDA increased 2023/24 bean demand by 3 million tonne - Chinese and Iranian stockpiling is adding to nearby tightness.
• May USDA estimates 2024/25 world bean production at 422 million tonne up another 27.4 million tonne with an increase to end stocks of 17 million tonne – the largest carry since 2019/20.
• The US soybean crop is 52% planted vs 49% average pace despite wetness.

Rapemeal

• Supplies extremely tight in the UK for May-July.
• Cargill and Erith maintenance and number of bank holidays on the continent reducing liquidity.
• Margins favour rapemeal; Crush may increase in Europe once we move out of current tight soyameal situation.

Distillers

• Tight spot EU rapemeal supplies support values.
• US ethanol production + 3.5 % week-on-week.
• Ethanol margins are positive, but inverted on forward curve and outlook does look optimistic.

Fibres

Palm Kernel

• European/UK stocks tight for May/July.
• Crush margins are positive so no expected shut down.

Soya Hulls

• Market direction driven by liquidity and without sustained volume Argentine farmer selling prices have some underlying support.
• Overall global demand lower.
• Some crushers looking for spot demand as stock levels begin to climb.

Sugar Beet

• Weather driven delays to plantings in general raises concerns over negative yield impact for 2024 campaign.

Cereals

Wheat

• Chicago wheat futures remain volatile.
• French 2023/24 wheat ending stocks pegged at 3.9 million tonnes, a 19-year high.
• India’s wheat stocks on 1 May were an 18-year low and -10% year-on-year.
• Ukraine 2024 wheat crop 12 million tonnes below peak, exports 10-year low.

Barley

• UK/Western Europe spring planting worries due to saturated soils, less optimism over big acres. Winter plantings in poor shape too.

Maize

• Argentina’s maize harvest 25% complete vs 31% average pace.
• BAGE estimates the Argentinian corn crop now at 46.5 million tonne (USDA 53 million tonne) with 17% of the area lost to insect damage.
• Short covering and hedge funds still short of 14 million tonnes of CBOT maize.
• Ukraine 2024 maize crop 15 million tonnes below peak, exports 10-year low.

Forage

Maize varieties 2024

• There are still options available for all feeding requirements and sowing areas for maize seed.
• Sowing after grass? Temprano + force is available.
• Needing to get a grass ley or cereal crop in after maize harvest? Contact us to discuss early harvest options.

Spring Grass

• Do you have any leys that need to be rejuvenated? Overseeding will maintain the physical and nutritional quality of a grass ley.
• ForFarmers TOPGRASS Leybooster Overseeding mixture contains Pronitro, a unique, precision targeted fertiliser coating that feeds only the sown seed and not the surrounding sward.
• It improves establishment vigour at the most crucial stage in the overseeding process.
• Save £4/acre on TOPGRASS Leybooster All Purpose Overseeding during May.

Sustainable Farming Incentive

• Are you wondering what are the best options with regards to the Sustainable Farming Incentive? Contact us to discuss options.
• Looking at SAM3 herbal leys? ForFarmers has a number of options available to ensure that production is not compromised.

Co Products

• Are you looking to extend your forage stocks? ForFarmers has an excellent supply of Brewers Grains, Mash Pro 30, SelcoPlus, Amy Plus and Distillers Draff throughout Scotland and England.
• These highly palatable moist feeds provide a good source of digestible fibre and protein.
• They also help to drive intakes within rations.
• Due to the high level of digestible fibre and low starch content they can be safely fed in high levels making it an ideal forage extender.
• ForFarmers can deliver these products nationwide for both feed loads and pitting.

• These products can also be ensiled on their own or with an absorbent such as wheatfeed.
• We can also provide advice on the best ways to ensile these products to ensure the best possible results.

• Contact the trading team at Shepshed to discuss options, pricing and to secure your volume. Telephone 01509 501830

Weekly currency trend

£1.272/$ - mixed

£1.170/Euro - mixed