World: Feed market, favourable weather sparks grain market decline

Published Jul 6, 2021

Tridge summary

The global grain markets have seen a decline due to better weather conditions in June, easing new-crop supply concerns. However, UK pig producers continue to face high production costs, despite a steady rise in pig prices. High input costs, such as wheat and soya, remain a pressure. The International Grains Council has increased the 2021/22 grain supply by 9Mt to a new record, but the market remains sensitive to weather news. The EU has seen an increase in all winter crop and spring barley yield forecasts, while the Global Supply and demand for oilseed look more comfortable for the new season.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

More favourable weather in June saw a welcome decline in global grain markets decline, as UK pig producers continue to battle with record costs of production. Despite the steady rise in pig prices over the past few months – the SPP stood at 157.57 in the week ended June 26 – margins remain under pressure. Input costs remain high, after being recorded at a record average of 174p/kg over the first quarter, driven by wheat prices in excess of £200/tonne and soya at around £360-370/tonne. While cereal prices have remained high during much of this quarter, better weather in June started to ease new-crop supply concerns, according to AHDB analyst Megan Hesketh, with spot UK ex-farm feed wheat prices losing more ground than barley prices. The discount of barley to wheat narrowed by £3.70/t to £15.30/t. This reflects tight UK barley availability as we approach the end of the season, Ms Hesketh said. “Rains and cooler temperatures across the US maize belt eased supply worries in June, ...

Source: PigWorld