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Raw Material Update

Updated: Sep 11, 2018

We are experiencing one of the most difficult and turbulent periods in the raw material market. Following a long sustained winter period after a poor summer of 2017, with very difficult forage and, to some extent, grain harvests, stocks of silage and hay and straw have been depleted rapidly. Demand for concentrated feed has been unprecedented because of this, plus a slow start to spring.



Supply of essential raw materials has been interrupted by world events:


PROTEINS:
  • Long period of drought in Argentina affecting the very important soya bean crop

  • Now, ironically, very wet weather affecting the harvest of the soya beans in Argentina

  • Knock on effect of rape meal demand, coupled with the interruptions of European crushing facilities

  • Winter closure of major ethanol plant in Yorkshire seriously affecting distillers supply

  • Less availability of US maize distillers and maize gluten

CEREALS AND FIBRES:
  • High demand stocks well down, particularly barley following high usage and exports

  • New influence of reduced current US wheat crop

  • Late sowing of UK spring cereals

  • UK sugar beet pulp all fully sold

  • Soya hulls increased with Argentina problems

Overall, the effect caused by adverse currency movements and world geo-political issues have dramatically increased the prices of all commodities.


Roger Dugdale, Director

 
 
 

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