Livestock farmers are set to be hit with an increase of up to £30/t on the price of purchased feed.
Restrictions on export volumes originating from Argentina, which is the world’s largest exporter of soya, combined with the collapse of sterling to a 35-year low against the US dollar last week, has resulted in soya rising by more than £100/t on spot markets. That leaves it priced around £410/t.
Reports from importers also suggest that shipping costs are up due to the worldwide coronavirus pandemic. As a result, availability of supply is now an issue and could lead to further price hikes for local merchants trying to forward-buy.
Other straights have also been affected by the rise in soya prices and the weakening of sterling. Barley has increased by at least £15/t on spot markets, which would put it around £205/t delivered on farm this week.
Maize meal has also increased and is trading around similar prices to barley. Soya hulls, which are a byproduct of the processing of soyabean, remain extremely difficult to source.
Merchants indicate that where available, hulls could cost £210/t delivered on farm next month.
Some merchants estimate that as much as £30/t could soon be added to cattle and sheep rations, bringing a general-purpose 16% cattle ration to around £240/t with dairy rations rising toward £275/t. Sheep rations will increase to £280/t.
Feed merchants say if further price increases are applied, they expect a drop in orders given the current pressure on cashflow on farms, and with the grazing season close to starting.
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