Commodities Report (25.04)

Over the past month the pound has made steady gains against the dollar, today 1GBP=$1.2408.  Against the Euro, the pound has been very volatile over the past month, with significant fluctuations, today 1GBP=1.1306.

Brent Crude rose sharply at the end of March before plateauing for a week at the beginning of April, followed by steady falls since, today $80.83/barrel.  With concerns regarding weak Global demand OPEC are to cut production.  

The GDT saw consecutive drops at the end of March (-2.6%) and early April, (-4.7%) however gains were made in last week’s GDT auction of +3.2%, notably Skim Milk Powder +7%, Cheddar +4.7% and Butter +4.9%.

Milk Powder
Raw material markets are variable with some increasing and others decreasing, however the overall trend is down. The longer-term outlook is the market is stabilizing, and suggestions longer-term, prices could start to move back up. 

Fertiliser Update

• CF revised down their Nitram AN 34.5 for April to compete with imported AN 34.5.
• Gas Prices in the UK have started to trade just under £1/thm

• This current stability in the gas market will help producers maximise their production over the next quarter.
• European new season offers have been released for the compounds 27N + 12SO3 & ASN 26N + 37SO3 here in the UK.
• Potash & TSP values have reset lower amongst the market weakness.
• Granular Urea prices, although have been softening over the past few months, have started to increase with the pending Indian tender for June.

Feed  

• May-23 UK feed wheat futures closed at £191.85/t today, up marginally (£0.30/t) from Friday’s close. New crop (Nov-23) futures also closed up slightly over the same period (£0.35/t), settling at £205.85/t. Forecast rains across the US plains and weaker Russian wheat export prices, limited support from worsening crop conditions in the US and uncertainty around the Black Sea export corridor.
• As at 23 April, 26% of the US winter wheat crop was rated as in good/excellent condition, down 1 percentage point on the week, according to the latest USDA crop conditions report. Furthermore, the proportion of the crop in poor/very poor condition has increased by 2 percentage points on the week to 41%.
• May-23 Paris rapeseed futures closed at €459.00/t yesterday, up €2.50/t from Friday’s close. The Nov-23 contract also closed up by €2.00/t, settling at €463.50/t.

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.