Feed wheat for spot collection continues to trade in the region of £140/T ex-farm although opportunities for movement between Christmas and New Year at a premium to this – please speak to the office to discuss your movement requirements.
As for movement further forward, the price carry offered is minimal due to a serious lack of buyer demand – spring movement is offering a £2/T - £3/T carry for example.
Hull’s bioethanol plant, Vivergo, announced on Monday morning that “as a result of market conditions and legislative uncertainty, (they) have taken the decision to take the production facility offline for the foreseeable future”, diminishing hope that they would re-open by the end of March as initially suggested.
They added that “over the past six weeks we have seen bioethanol prices fall, significantly impacting profit margins further.
Whilst there have been some supply increases this year, the bioethanol market remains constrained by the governments inaction.
We have reluctantly welcomed the Governments renewable proposals in September, but we remain extremely concerned that there is no roll-out framework for E10 in the UK, the absence of which could have serious consequences for the long-term future of the UK bioethanol industry.
The announcement is yet to have an impact on the spot market, presumably due to the usual Christmas / end of year “panic buying” we see so often at this time.
However, I would expect the forward market to continue to decline as we head into 2018, at least by enough to realign with values elsewhere in the country.
As for feed barley, £130/T ex-farm continues to be offered for spring collection. New Crop feed barley has today traded at £115/T ex-farm for as available collection off the combine at harvest.
Spring malting barley contracts are now filling up and seed varieties are becoming increasingly limited. For those of you who are still undecided, I would suggest that decisions are made sooner rather than later!
OSR for spot collection is this morning values at £310/T - £315/T ex-farm depending on collection requirements over the Christmas period.
Current values are roughly £15/T lower than the highs seen just over a month ago with no sign of short term recovery despite the weaker pound.
Question marks still surround the South American soybean crops which are due to be harvested from the New Year onwards – this will certainly be worth monitoring for those of you who still have a shed full!
Also – it is worth noting that new crop OSR for movement straight off the combine into store at harvest is valued at £300/T ex-farm; might not be a bad place to start?