OFG Logo 2020.png

Weekly Straights Update
3rd March 2022

imagesICH24W26 (1).jpg

Please note that due to the ongoing crisis in the Ukraine, KW who provide the data for the charts are unable to provide prices as they remain POA due to the unprecedented volatility of the markets, hence the reason no prices are shown.

 

Hipro Soya

  • The invasion and ongoing battle by the Russians in Ukraine has kept the market very firm and very volatile.

  • General market sentiment is being driven by the political fallout from this.

  • Sanctions and concerns over energy/oil/gas supply will be impacting on crush margins for producers, as well as globally.

  • Crops have not improved in South America, though the market is paying little attention to the physical S&D picture right now.

  • China have announced they are planning to plant as much soya domestically as possible, to limit the reliance on imports.

 

Rapemeal

  • Prices moved up along with everything else.

  • A certain amount of rape seed is imported towards the end of the old crop season, which may not help supply issues.

  • Sunflower pellets (normally used in mills and compete against rapemeal in formulations) will be greatly impacted as the majority are sourced from Ukraine/Russia and shipment are currently just not possible.

  • There are other sources for these products but supply is expected to tighten up dramatically as a result.

 

Soya hulls

  • Prices have also moved up with sugarbeet availability now in question.

  • Supply is expected to be tight until asa May and summer prices look a good option against beet pulp.

 

Distillers

  • With exports of maize and wheat from the Black Sea region shut down prices of grain by-products have rallied.

  • Ethanol margins have also turned negative which will not encourage large production.

Sugar beet

  • The majority of summer supplies are sourced from Russia which is now in question as to whether it will be shipped.

  • Some ports have reasonable stocks already but supply will be very tight unless the conflict is resolved swiftly and peacefully.

 

Wheat/Barley

  • London wheat has jumped on the back of the invasion and continues to rise.

  • Exports from two of the top global wheat suppliers has been disrupted for the foreseeable future and so supply has tightened.

  • Barley was already tight so there is not enough available to allow for swaps to wheat.

  • China has removed all import restrictions from Russia suggesting they plan to source more from them, which seems like a backdoor route to supporting them.

 

!!!Deliveries!!!

Due to the ongoing acute lack of drivers impacting the haulage business, the lead time for the delivery of all commodities has increased dramatically. Please bear this in mind when placing orders.

 

And finally, totally irrelevant but quite interesting facts of the week…….

 

In 1947, John D. Rockefeller could pay off the whole US public debt on his own. Today, Bill Gates’s entire fortune would barely cover two months’ interest and the chemical name for titin, the world’s largest known protein is 189,819 letters long.

Notes:

1. All data in this report are provided by KW

2. Click on the 'information' button to link through to the exact product specification

3. Price indications are based on 29t bulk tipped loads delivered to Oxfordshire and are guide prices only.

4. For firm prices and availability, please contact Joe Cobb on 01865 393 139

Historical Product Prices

  • You can look back at previous product prices here

  • Use the filters below to select the Product and the Date

Spot Price Trends 01/06/20 to 23/02/22 (£/t)

  • 'Price at Fixed GBP to USD (Jan 2018)' takes out the effect of exchange rate movements between £ vs. $

Currency Trends as of 23/02/22. Blue = GBP:USD. Red = GBP:EUR

Currency 23 02 22.png

For more information:

www.ofg.org.uk

OFG Logo 2020.png
Barley Fields
2020%20DE%20logo%202_edited.png