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Livestock farmers face a £10/t to £15/t price increase on animal feed between October and the end of the year, after spot markets for straights experienced a major price hike.
Soya has increased by close on £60/t from midsummer levels and is currently costing merchants around £355/t for delivery from November onwards.
Applying handling and transport costs to current spot prices would see soya on farm in the region of £370/t to £375/t.
Maize meal delivered in November will be up by £22/t compared to midsummer, with maize distillers rising by a similar amount, while soya hulls are up £12/t.
At present, rolled barley is being delivered on farm from £185/t to £190/t
Depending on quantities purchased, maize meal delivered on farm is likely to rise towards £205/t by November, with maize distillers at £230/t to £235/t, and soya hulls at £180/t to £185/t.
Sugar beet pulp is likely to cost in the region of £205/t.
At present, rolled barley is being delivered on farm from £185/t to £190/t, and it appears to be hardening in value as the UK harvest comes to an end.
The outlook for feed prices at the start of September was broadly steady, with several merchants reducing ration prices by £5/t at the start of the month.
Reversed
However, sources indicate this price cut will have to be reversed, either on 1 October, or by the end of the month.
Although higher prices appear imminent, feed mills are reluctant to apply the full price hike in one go.
Instead, merchants would prefer to spread any price increase over the next three months.
Dairy rations will potentially increase to £265 to £275/t
By that stage a 50% maize beef finishing ration is likely to cost in the region of £220 to £230/t, with a 16% growing ration at £230/ to £235/t.
Dairy rations will potentially increase to £265 to £275/t, depending on protein content and levels of soya included.
Rising market
Fuelling higher feed prices has been the re-emergence of China on global grain markets. As China re-stocks its national pig herd in the aftermath of African Swine Fever, it is absorbing large volumes of soya for pork production, and for its expanding poultry industry.
China has also emerged as a major buyer of global maize stocks after typhoons devastated domestic maize crops earlier this month.
Currency is an additional factor behind higher spot markets, with sterling significantly devalued against the US dollar amid concerns around ongoing trade talks with the EU.
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