April 8, 2011
 

World feed millers convert to less expensive wheat

It has been predicted that high corn prices will encourage global animal feed manufacturers to utilise more wheat.

Corn has now hit its highest per-bushel price in two years, said an analyst

However, this is in turn is raising the value of wheat, with inventories declining and prices having grown 4.5% in the last quarter, though it is predicted that wheat will still be better value than corn.

"The whole grain market is related through animal feed because producers tend to switch from corn to wheat. Right now wheat is supported by the corn story," an analyst said.

It was also reported this week by the media that an export embargo in Russia will put even more pressure on cereals stock.

This in turn suggests that animal feed manufacturers will have to deal with high prices for cereals for a while yet.