September 17, 2010

UK soy prices stay firm

Soy prices in the UK are firm, with premiums of up to GBP20/tonne (US$31) over feed value for decent quality.

However, spring bean yields have been disappointing - often lower than 2.5 tonnes/ha - with a high proportion of small beans, while winter crops have not fared so badly.

Bruchid beetle damage levels were high in the early crops harvested in the south east but there is a general improvements in quality northwards, said merchants.

The feed bean price is GBP175-GBP180/tonne (US$272-US$280) spot ex-farm, depending on location and this is currently a bit high for compounders, although they prefer beans to peas, said Alan Wymer of Norfolk-based Saxon Agriculture.

The UK bean crop is likely to be just 450,000-475,000 tonnes and with good export prospects the outlook is bullish for prices, although net margins from the crop will be knocked by lower yields.

Sudan and Egypt are the main potential customers, as their traditional supplier, France, has had quality issues and lower yields this season. However, French farmers do have the advantage of an extra GBP30-plus/tonne (US$47) subsidy on top of the standard EU protein crop supplement.

"The UK will be well placed to do more export this season, although there will be a bit more of a threat from Australia," said Wymer.