A number of feed merchants have added £6/t to £10/t to ration prices at the start of November, as cereals and protein straights continue to rise in value on global markets.

Spot market prices for key straights have moved up sharply since late September.

While the majority of merchants have forward cover in place on most straights (allowing some companies to hold prices this month), volumes locked in vary and merchants regularly have to top up stocks at spot market value.

Rolled barley purchased this week at spot prices will cost farmers in the region of £200/t to £205/t, a rise of £10/t from early October.

Maize meal has increased by £20/t over the past month and now costs around £205/t delivered on farm.

Protein

Soya continues to rise in value, with China driving demand on global markets. Based on spot prices this week, soya delivered on farm is through the £400/t barrier, a rise of £30/t on the month.

That is creating more demand for alternative protein sources. Maize distillers is up £10/t to £245/t on farm with rapeseed meal costing £265/t. Maize gluten is currently in limited supply.

Products such as soya hulls have also increased by £10/t and cost around £192/t to £195/t delivered.

Compound rations

Where merchants have applied a price increase on compound rations, beef finisher rations are now costing £225/t to £235/t, depending on volume purchased, the level of maize included and whether rations are blends or pelleted.

General-purpose cattle rations at 16% protein are priced around £230/t, although there are some cheaper rations available which use alternative proteins to soya.

Dairy rations range from £255 to £265/t depending on ration type and protein content.

However, some farmers are insulated against these price increases, with a significant volume of feed forward sold to purchasing groups before prices started to rise.

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