7th August 2024 Commodity Market Report

Hedge funds near shortest position on Chicago agricultural commodities since September 2019.

• Sterling is weaker against the dollar week-on-week, 1.5 cent versus $.

Proteins

Soya

• Hipro soya meal is slightly firmer week-on-week for the winter position, around £8/t.
• Weather markets remain the key price driver with funds short of beans and prices close to cost of production.
• Lack of farmer selling in Argentina with widening of official peso versus blue peso - currency devaluation threatened.
• Potential stock piling of soya in the EU ahead of EUDR regs 1st - January 2025.
• Further acreage increases predicted in Brazil in 2025 with USDA predicting a 169 million tonne crop (+16 million tonne year-on-year) – early days.

Rapemeal

• Winter 2024/25 rapemeal prices pretty much unchanged from last week.
• Great Britian winter oil seed rape 73% harvested by 31st July with yields variable on cabbage stem flea beetle, and averaging 2.9t/ha.
• Declining European/UK production, lowest since 2020.
• Hot/dry in Canada at critical flowering period.
• Anti-dumping duties on biodiesel imports into the EU should makes rape oil more attractive.
• UK rapemeal prices competitive against Europe, potential to be exported if EU markets rise with EUDR.

Maize Distillers

• US driving season typically over mid-September. Ethanol production will drop in conjunction with increased buying interest for winter rations.
• Margins remain positive for US producers, incentivising production.

Fibres

Palm Kernel

• New Zealand expected to come into the market at some point this month to cover volume following field days.
• Order flow in most destinations is very quiet. EU seems well stocked and Asia absent buyers for now.
• 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.
• Current margins support South American crush.

Sugarbeet

• EU sets higher tariffs on Russian/Belarusian sugarbeet pellets, effective July 1^st.
• Weather driven delays to plantings in general raises concerns over negative yield impact for 2024 campaign (October onwards).

Cereals

Wheat

• Little change to wheat and barley prices week-on-week.
• Early UK winter wheat yields possibly -9% year-on -year prompting slow farmer selling.
• Low prices encouraging consumer buying and discouraging farmer selling - locally and globally.
• CBOT wheat at contract lows and competing into Asia.
• Hedge funds short of 12 million tonnes of CBOT wheat.
• Record Russian wheat exports; 2024/25 Russia now selling cheap again, $20/t less than France.

Barley

• AHDB say 85% of Great Britain’s winter barley was harvest by 31st July with yields variable but averaging 6.21t/ha, 12% below average.
• Famer selling very light.

Maize

• Some short covering on Chicago maize Friday night but hedge funds remain near record short.
• US maize supplies competitive, even more so now the dollar weakens.
• 2024/25 global maize ending stocks: use ratio excl. China below average and hedge funds near record short.
• Chinese demand soft with pig numbers -5% year-on-year.

Co-Products

• Are you looking for a cost-effective source of starch on farm? ForFarmers have a good supply of caustic wheat to cover your needs
• Caustic wheat provides the benefit of high starch and energy content for your ration. As an alkali product it helps promote stable rumen conditions which are essential for efficient feed utilisation.
• The reduction of acid loading in the rumen in turn leads to increased milk yield and quality in dairy cows and increased live weight gain and feed conversion in beef cattle.
• It is available nationwide delivered to farm and ready to feed. Contract prices available as well as spot pricing. Contact the team now.

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.
• Are you 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 SAM3

• 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.

Sustainable Farming Incentive SAM2

• Are you looking to put in a winter cover crop? Contact us to discuss your options.
• 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.

Weekly currency trend

£1.270/$ - mixed

£1.164/Euro - mixed