Farmers should secure their winter feed and minerals now and assess their rations to ensure they are not overfeeding amid fears that prices could hit highs later in the year as supply dwindles. 

Speaking on a Market Updates Webinar organised by Mole Valley Farmers last week (12 July), Daniel McCreadie, Head of Agri Procurement at Mole Valley Farmers, said farmers could lose more than they would gain by holding off their purchase.  

Grain  

“It may be a bit earlier than usual, but you could wait and gain £5/t or lose £15/t. The market for grain and protein has bottomed out and is now a rising market rather than a falling one,” he warned. 

Mr McCreadie described the grain market as ‘bullish’ with prices this month (July 2022) hitting a high of £360/t before falling back to £260/ t. Ukraine did not enter the shipping programme this week, and combined with the weak pound to the dollar, has resulted in prices rising again.   

Soya  

Soya is steadily increasing week-on-week at about £10-£12/t, with jumps of £20 in a day also reported. 

He added: “Markets are volatile and moving aggressively. From a risk management perspective, it makes sense to secure your needs for winter. 

“Grain prices will rear their head as we head into September and October when there is less. We may see prices rise dramatically due to supply and demand,” he said. 

Minerals and Vitamins  

Neil Berryman, Site and Procurement Manager at Mole Valley Farmers Feed Supplement, also suggests farmers look at their winter requirements for minerals, with volatility affecting the market. He advised farmers to look at their mineral requirements first by assessing the rations to ensure they are not overfeeding them. 

He said: “Phosphates historically have tended to be overfed, which will come at a significant expense.” 

Farmers should also expect to see hikes in products like dry cow minerals as magnesium prices rise due to the volume of gas used in its production. 

Vitamins, on the other hand, are relatively stable. As a result, Mole Valley Farmers has covered material to take advantage of the pricing 

Fertiliser Urea 

Craig Paterson, Head of Fertiliser at Mole Valley Farmers, explained how urea for September delivery would see some increases. Still, there could be an opportunity for farmers to buy on discounted spot value in August.  

He added: “The availability of the product from normal origins is significantly reduced, so we will see further issues with curtailing production. My advice is to get some product on farm sooner rather than later. 

“If you are producing muck, get it analysed and utilised into a plan with bagged product,” he added. 

Mr Paterson said the weak pound to the dollar is adding up to £50/t to granular urea alone. “Prices are being issued and pulled in the hour. A £30 increase is the new £2 increase,” he said.