27 February 2015 | Online since 2003

22 April 2012|Feed and Forage,News

Humphrey Feeds commodity report - 20th April 2012

Sterling lifted against $ during the week, but the main currency news related to the IMF begging bowl which was passed around looking for more contributions. Japan made a contribution, but will the UK, and will there be enough funds to address the increasing concern about the state of the Spanish economy? The bank of England admitted that it would cease quantitative easing next month, fearing that it could be adversly affecting inflation.

Wheat traded a mildly volatile week, ending less than £1 up on both old and new crop futures, although the physical market showed a distinct divergence with old crop rising £5, whilst new crop dipped mid week, to end unchanged, with the key November position showing wheat at £157 delivered to the mill. Have we had enough rain to avert a drought which would reduce the size of the crop? The HGCA confirmed that the UK is still exporting as over 200,000 T was exported in February, taking the season total to that date of just under 2 mln T. France has recieved some rain, which may help to address the this season’s drought, but the crop size is expected to be smaller, as are the crops from Spain (down 25%) and Germany (down 12%), meanwhile there are concerns in some key northern European states about the impact of the late winter frost which have probably reduced the the production. The Ukraine has increased cereal stocks by 70% on the previous season to 17 mln T, and they anticipate, with production for the coming season up to 60 mln T, with exports of up to 10 mln T, however Russia has a late spring which will delay spring planting.

US conditions are good for the developing maize crop, which might be harvested early, which is usually as new crop soya arrives in the UK, the price drops, however this year the supply has been slow, and the spot premium position seems to roll forward, so that this may yet be one of those strange years where we do not reach significant discounted summer prices.

225000 T of US soya was sold to an international mystery buyer, which is probably code for China. China’s animal feed production for March is up 18% on the same period last year – can the supply of imported feedstuffs keep up? So far this year China has bought 22mln tonne of US soyabeans, with forward purchases of new crop material of 6mln – a lot more to buy. Last year it used 55 mln tonne, this year….? Brazilian farmers have harvested 90% of the crop, but the harvesting continues to show reduced yields.

As the crop potentials in S America reduce, the higher prices rise. In Argentina the lower yields mean that farmers are slow to sell their soya - holding out for a compensating higher price. The funds hold a position that is bigger than the size of the Argentinean crop!



No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.


20 February 2015
Policy Officer
A commitment to the local agriculture industry; And possess a third level qualification in an agriculture related subject, th...

19 February 2015
7.5 ton Delivery Driver
7.5 Tonne Multi Drop Delivery Driver required Monday to Friday only, 5.30 start for 6am depart from depot. You will be respon...

9 February 2015
Research Manager (Animal Welfare / Food Production)
Compassion in World Farming is the leading international farm animal welfare charity, campaigning to improve the lives of mil...

25 February 2015
Labourer / forward tipping dumper driver
Due to continued expansion we are currently seeking to engage the following based at our Srondoire Wind Farm in Lochgilphead....

17 February 2015
BDM - Water Treatment - London - £50k OTE
As Business Development Manager you will report to the Sales Director in this all new business role and will be charged with ...

Top stories you may have missed
2 February 2015 | Arable
Is EU membership damaging UK farming?

Is EU membership damaging UK farming?

Membership of the EU is damaging the British farming industry, according to...

29 January 2015 | Machinery and Equipment
Drones 'rapidly changing' agriculture

Drones 'rapidly changing' agriculture

BASIS has launched an accreditation for pilots of Unmanned Aerial Systems (...

23 January 2015 | Arable
UK wheat yields have potential to double

UK wheat yields have potential to double

UK wheat yields have theoretical potential to more than double over the nex...

23 January 2015 | Machinery and Equipment
Crowds flock to LAMMA 2015

Crowds flock to LAMMA 2015

Britain’s farmers flocked to Peterborough for the first day of LAMMA’15 to ...

22 January 2015 | Cattle
Don't blame supermarkets for milk crisis...

Don't blame supermarkets for milk crisis...

The crisis in the dairy industry is not the fault of supermarkets, accordin...

16 January 2015 | CLA
Families affected by HS2 face 'major wor...

Families affected by HS2 face 'major wor...

Transport Minister Baroness Kramer visited three rural businesses in Cheshi...

16 January 2015 | Machinery and Equipment
John Deere unveil new 6R tractor range

John Deere unveil new 6R tractor range

Spearheading the John Deere range of mid-size tractors from Mannheim, the n...

14 January 2015 | Animal Health
Monthly TB checks more effective than ba...

Monthly TB checks more effective than ba...

Regular testing for bovine TB could significantly reduce the number of infe...

12 January 2015 | News
Government regulations hampering UK agri...

Government regulations hampering UK agri...

Single-issue policy-making threatens to hamper, not help, the progress of U...

8 January 2015 | Cattle
2015: The year ahead for the beef market

2015: The year ahead for the beef market

2014 has been a “rocky old year” for the beef industry but better prices ar...