Grain prices continue to fall on spot markets, which could translate into lower feed prices during late spring.
Prices for imported barley purchased on forward contracts for May delivery are at £187 to £190/t this week, down £10 to £15/t since mid-January.
Applying handling costs and margin, that would see barley delivered on farm between £200 and £210/t, down £15 to £20 on current costs.
Wheat purchased on forward contract, again for May delivery, is hovering just above the £200/t mark, down £15/t on mid-January.
Spot markets are heading downwards in part due to grain flowing from the Black Sea region, plus an improved forecast for US winter wheat stocks.
Forward prices are expected to ease further.
Soya prices have also seen significant price corrections in recent weeks which should also filter through to the ration prices in late spring. Imported soya is in the region of £420 to £425/t, down from highs of £515/t back in early December.
While feed inputs have fallen in value, local mills had to lock in to buying contracts in late 2023 when prices were at significantly higher levels, limiting the opportunities to lower ration prices in recent months.