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Weekly Straights Update
22nd September 2022

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The figures in the charts are an indication only and reflect levels traded on Tuesday.

Hipro Soya

  • Chinese demand remains difficult to judge due to continued lockdowns in cities, though they are continuing to buy and in bigger chunks when they do, consequently causing bigger moves in the market.

  • Worldwide demand could be hampered by a global recession.

  • The expectation for La Nina in South America again this year would mean lower yields for crops and smaller production than might be hoped for.

  • Argentinian farmers have sold a chunk of beans to take advantage of the government incentive for September, but this has now been factored in and the market is not reacting to it.

  • Yesterday’s news regarding Russia/Ukraine pushed prices higher again.

  • Continuing strength in the US dollar isn’t helping the home market.

  • With limited cover on for the winter at farm level, shippers are hesitant to book more vessels for the winter, which could cause some issues with spot availability going forward.

 

Rapemeal

  • While seed prices dropped back with pressure from the Canadian harvest, prices mainly tracked the soya market.

  • Estimates put the Canadian crop at 19.1 million tonnes, up 38.8% from last year.

  • News yesterday from Russia that they planned to annex occupied parts of Ukraine spooked the markets.

  • The referendums are very likely to go Russia’s way and any attempt to regain that land by Ukraine would be viewed by Russia as a direct attack on them.

  • It puts Black Sea exports back into an unknown territory.

 

Soya hulls

  • Continued demand for hulls over sugarbeet is keeping prices supported and is not expected to subside.

  • Typically hulls piggyback on shipments of hipro soya and with reduced planned shipments of hipro this winter, hulls will need to be seen to become the man export product or face reduced supply.

 

Distillers

  • Distillers continued to firm with support from the protein market and also energy markets after Putin’s announcement.

  • Poor currency also didn’t help.

 

Sugarbeet

  • Prices remain firm with imported rising up to similar levels to the home produced.

  • Product still remains limited given the poor yields and the issues surrounding Black sea exports.

 

Wheat/Barley

  • Prices stagnated with little fresh news, demand concerns continue.

  • Russian grain offers for export are undercutting EU offers, but with a record crop they are keen to get homes.

  • With Russia’s announcement about annexing Ukrainian land, markets jumped up as it brings Black Sea exports into question again.

!!!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…….

Graphene, the world’s strongest material, is a million times thinner than paper but 200 times stronger than metal and to break through a sheet of graphene as thin as cling film would take the force of an elephant balanced on the point of a pencil.

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

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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 01/01/21 to 21/09/22 (£/t)

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

Currency Trends as of 21/09/22. Blue = GBP:USD. Red = GBP:EUR

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For more information:

www.ofg.org.uk

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