Commodities Report (15/05)

Since my last report the pound has been very volatile against the dollar with gains and falls, today at 1GBP=1.2094USD.   Again, against the Euro, the pound has fluctuated, however, has made an overall gain of 0.372 to 1GBP=1.15026EUR.

Brent Crude dropped to a low of $72.33/barrel during the first week of May, the lowest levels seen since the last quarter of 2021. It has since been volatile today at $74.55/barrel. We are witnessing the lowest levels at the pump since Russia’s invasion on Ukraine (average price of petrol below 145ppl and diesel 154ppl) after reaching record highs last summer.

The GDT saw a further gain +2.5% in the recent auction. Whole milk powder +5%, cheddar +4.5%, butter +2.4%, skim milk powder +1.5%.

Milk Powder
A real mixed bag with some commodities either up, stable or showing small decreases, currently;  SMP prices are increasing at the moment (circa  2250 euro feed), but whether this trend will continue remains to be seen,  SWP price remains stable with WPC showing some stability but can and should trade lower in the next few months, cautious advice would be that current pricing is approaching stability and maybe, although levels are not the lowest expected, are near enough to drive demand vs the recent market.

Fertiliser
The market has been a little more active over the past couple of weeks, with enquires and orders filtering through for deliveries at the end of the year.

• Granular Urea remains firm for prompt shipment. There is still a lack of direction for forward markets as there will always be volatility due to the fluctuation of global demand and supply.
• Ammonia prices have fallen recently in Europe, due to the lower gas prices.
• European Nitrate prices have risen as Yara increased prices following strong demand at the new lower levels.
• We are still awaiting for new terms to be released from CF for Nitram new season offers.
• Many new season NS offers have been withdrawn in the UK, as higher replacement values are being traded on the continent and various factory closures have sparked concerns over continuity of supply.
• Both MOP & TSP prices have now stabilised.

Feed  

Wheat

• UK wheat prices have traded down about £2.50/t over the week on both old and new crop as a firmer currency, favourable weather prospects and the general un-competitiveness of UK export supplies continues to weigh on the market.
• Negotiations continue to try to extend the Ukraine grain export corridor and this uncertainty limited price falls. The current deal expires this week and there’s no answer yet about an extension. Turkey’s Defence Minister says a deal is getting closer but Russia states there is nothing new to report (Refinitiv).

Feed Barley

• Domestic consumers are not showing any interest in old crop and are still sitting on their hands going into new crop, with markets continuing to drift and prospects looking good for the developing crop.

If you would like prices for Fuel, Feed, Fertiliser or Milk Replacer please call Louise on 07943 684215
or e-mail: louise@dblbuyinggroup.co.uk.