Lower global feed prices could help support winter feeds

Published 25 September 19

Grain and protein feed prices are both currently lower than last year, helping producers who have to supplement silage.

Winter feeding- price change

Global supplies of cereals are looking plentiful. The latest estimate from the USDA puts global wheat for 2019/2020 production at 1.04 billion tonnes, 3% more than last season.

Favourable weather has resulted in large domestic cereal crops. UK wheat production is forecast between 15.9-16.2Mt, the largest crop since 2015/16. Meanwhile, UK barley production is put at 7.3 million tonnes. There are also reports of a large carryover of stocks from last season, boosting availability further. 

Large South American and US crops from last season have resulted in large global supplies of soyabeans. This is weighing in on prices, although prices have firmed in the last week following China’s announcement that US soyabeans will be exempt from any additional tariffs.

In contrast, global rapeseed production this season is expected to be the lowest in 3 years, according to the USDA. This is mainly due to a reduction in supplies from the EU due to a smaller planted areas and pest challenges from the cabbage stem flea beetle. Tighter supplies has provided support to delivered rapeseed prices. At the moment this has not translated into higher rapeseed meal prices.

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Felicity Rusk