- We were looking for today to be a “turnaround Wednesday” in the aftermath of the last few sessions’ gains. However, this has not proved to be entirely the case in choppy trade both sides of unchanged. Soybean meal has been the biggest loser, following its gains yesterday. Producer selling has remained a feature, particularly at the higher levels although consumers have been noticeably absent.
- The return of China to the market (at lest in part) following their Lunar New Year holiday may well add some fun and games with the potential for switching and/or cancelation of soybeans, which will no doubt have a degree of influence on market direction going forward.
- In the UK has been reported that ForFarmers, the Dutch Group that owns Hendrix and BOCM, has acquired Crewe based HST Feeds for a price reported to be based upon an enterprise value of €15 million. HST manufactures and sells about 140,000 mt of ruminant and poultry feed, principally in the North West of the UK.
- According to the UK’s DEFRA, the UK 2013/14 wheat balance sheet is more finely balanced than many would have us believe. The price relationship between various grains, including maize and barley, is a key determinant of value and consumption going forward. Additionally a stronger £Stg, particularly vs. the € as UK economic recovery outpaces that of continental Europe reduces the UK’s export competitiveness and makes imported grains relatively better value, potentially bearish for UK grains.