This episode of Feedcast sees James Butt-Evans and James Barker discussing the impact of the US Stocks and Acreage report that came out last week, what the weather means for prices going forward, EU and UK crop prospects and alternative feeds you could consider in your rations.

The US Stocks and Acreage report was a bit of a shock to the market, with lower acreage announced on corn and  soya than was expected. This has resulted in increased volatility especially in soya, with a peak of $25 just 10 minutes after the report was issued. We now see acreage being around 2.5mT short, the question is where will this come from and we won’t know the answers until harvest, suggesting this volatility will continue for the foreseeable future.

This makes the US weather more important than ever, with rain forecast in Iowa and the Dakota’s this could help this acreage problem. Just a 5% uplift in Iowa’s crops can offset a 25% decline in the Dakota’s so the weather is now pushing the volatility. 

In the UK there is better news with a good wheat harvest forecast, which has resulted in a softening of our prices following the last Wednesday spike. Northern Europe has been suffering with heavy rain and humidity which might result in a poorer wheat quality, however that presents opportunity for the feed wheat buyer over a miller, so worth watching.

There are still well priced products out there including biscuit meal, Ensus distillers and NovaPro. Now is the time to reassess rations, getting too short of brought materials is not a strategy for success and make sure you keep an eye on the forecast.