Raw Material Overview

Proteins

Soyabean meal – up over £100 per tonne from its lows in February

  • Adverse weather conditions during summer saw a drop in U.S Crop
  • Lack of rain in South America is possibly ruling out predicted bumper crop from Brazil, of which over 50% had already been traded before it was even in the ground
  • Huge increase in demand from China to sustain its massive pig breeding program

Rapemeal – up over £80 per tonne

  • Fire in main crushing plant at Erith created huge strain on demand from other supplies such as Europe
  • Firm oilseed markets seen surge in value for vegetable oils such as palm, rape and sunflower oil

Cereals

Wheat – up £40 per tonne

  • Reduced Uk crop circa 20% drop in production
  • U.S also reduced due to adverse weather condition

Barley – up £20 per tonne

  • Again, reduced UK crop and increase in demand due to huge wheat premium

Maize – up £50 per tonne

  • Not so long-ago maize was a discount to wheat, but with a greatly reduced crop this had to at some point re-align itself back to a premium raw material

Fibres

Sugarbeet – up £30 per tonne

  • Again, weather conditions went against us greatly reducing beet crop, and now very limited availability until new crop comes September 21

We very much appreciate that this does not make good reading but unfortunately it is the reality which we find ourselves in, and without a doubt we are still in for a continued bumpy ride with many other factors that could still impact on prices such as Brexit and Covid lockdowns that could potentially affect supplies in the UK.

Graham Dodd
Blends & Straights Manager

 

CMC Team

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