Global uncertainty – take our advice
We’re advising our Farmer Shareholders and members to prioritise their summer feed contracts amid fears of more turbulence in the raw material markets.
With milk and grain prices falling some members may be waiting and hoping for a more settled outlook.
But our team of market traders, led by Head of Agri Procurement Daniel McCreadie, fear there’s only one direction of travel for feed prices – up.
He said: “There was a massive cost rise at the beginning of the Ukraine war but over the last six months that has fallen and now stabilised. Unfortunately, the global situation and the ongoing conflict with Russia means there is still the possibility of big price surges at any point.”
Our traders are monitoring data on the stability of the grain corridor, the news out of Russia, the EU’s position on Ukrainian exports, as well as post-Covid currency fluctuations, UK and worldwide grain supplies.
Mr McCreadie said: “Taking everything into account, we believe now is the time to lock in your summer feed requirements. With the falls that we have seen this winter, the upsides on pricing now heavily outweigh the downsides.
“We want to help our farmers mitigate the risks. By buying at a fixed amount they won’t have to worry about price volatility as the global picture continues to rapidly unfold.”
No one has a crystal ball but locking in the feed price now will give you some certainty in an increasingly uncertain world.
If you would like to review your feed contracts for the summer and beyond call 01566 780261.