Most regions are experiencing an excellent spring for growing grass. If soil moisture levels are maintained we should see pastures develop further through October and November.
As the summer is an unknown for those who don’t have their supplementary feed sorted the next few weeks provide an ideal time to obtain some cover in advance of the December logistics window.
There has been a noticeable move toward nutritional blends this year. This trend has been escalating over the past few years, however the introduction of FEI has accelerated the transition. This has taken a bite out of the straight commodity market.
Going forward FEI will take the edge off PKE demand in the event of a dry spell. Where import logistics allow its likely some PKE demand will be substituted by CGFP and DDGS.
PKE output continues to flow at record pace which is matched by record global demand. Winter crop production issues in Europe and Australia is squeezing feed grain supply hence the need for alternate options.
The wet season is due to begin throughout South East Asia so PKE production will start increasing. However as is often the case logistical shorts squeeze the market and prices tend to increase over the NZ summer. Based on current price levels we hope this is not the case this year but it is something to watch.
The price of corn gluten and dried distillers grain have retreated recently coinciding with the US harvest period and the need to keep products moving away from processing plants.
Prices today in NZ range from high $280’s to low $310’s. As summer draws near spot prices will increasingly trade at a premium to forward contracts.
While good stocks are in country at present, demand is growing for co-products at a consistent pace. We would encourage forward commitment, especially since these products are likely to be the feeds of choice in the event of a dry summer.
To keep you informed of the season over the ditch please find below the link to ADM’s Market Snapshot compiled by our Aussie colleagues. While the report is cropping focused the widely reported feed shortage is impacting on dairy, cattle and sheep producers across the entire east coast.
As reported in our last update importers are looking at products such as soybean meal, PKE, DDG and CGFP to supplement feed shortages. Due to Australian quarantine requirements these imports may not commence in style until Q1 2019.
Call your local ADM Sales Manager to see how ADM can assist your feed business!
ADM Sales Team
Tina Thomas 027 5288 256 Upper North Island
Grant Gibson 027 5288 511 Lower North Island
Brian McCleary 027 5288 191 Upper South Island
Brenda Gerken 027 5288 125 Lower South Island
Gerard Fellows 027 5288 520 Technical Sales Manager (Blends)