The agribusiness knowledge provider
Hot Topics
  • Another year of plentiful feed supplies and low prices
  • • 2017 should see world feed costs fall for a fourth consecutive year • Instead of low CBOT prices and China corn market reform shrinking inventories, a combination of good weather and better crop seeds are pushing both corn and soy stocks to record highs • China market liberalization's corn inventory reduction was more than counterweighted by a record American harvest and bloated US inventories • After a prolonged period of historically low inventories, the rebounding of US soybean inventories to normal levels resulted in world inventories breaking their newly set record. • Even if emerging La Nina conditions result in arid South American growing season, the current oversupply is poised to keep feed grains and oilseed costs at low levels through at least H1 2017
  • Low feed costs and a crop bear market that just won't quit
  • • Due to a combination of unusual circumstances, corn production increased by 19% and soybean output by 26% over the four years feed crop bear market • Unusually high harvest growth caused forecasts corn and soy inventory declines to turn into further supply increases • Price support from a tight meal market made for better soy bear market returns but more bloated inventories, a slower bottoming out of fundamentals • Feed mills and livestock farms will enjoy low feed costs through to the end of this decade
  • Salmet International GmbH
  • INDIV
  • MPS Meat Processing Systems
Copyright ©2017 eFeedLink. All rights reserved.