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Up corn down horn

Date Added: 11/02/2011

Low corn stocks maintain bullish impetus

 

Wednesday's USDA report gave fresh impetus to corn, wheat, soya and rape prices as US corn stocks were revised down. Prices of new crop oilseed rape have improved more than those of old crop as crushers have less appetite for the old crop position. The focus remains on a battle for acres between corn and soya which should keep prices high in the short to medium term.

 However at these higher commodity prices we are now seeing a rationing of demand. This has become particularly evident in the rapemeal market as livestock producers are struggling to justify higher feed costs. Rapemeal is now offered at £187.00 ex for spot and £159.00 ex for harvest, significantly cheaper then feed wheat and feed beans. Compounders are in turn making use of relatively cheaper supplies of corn distillers and corn gluten imported from the US. The worry is that demand for rape products and in turn rapeseed diminishes and prices at some stage begin to fall.

 

Owen

 

 

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