Market Intel
Fog of More (Unknowns)
War in the Mideast ignites oil, gas, fertilizer spot prices while obscuring longer range effects on feed ingredients markets.
Meanwhile…
Soybean meal: SBM futures are lower given the corn-to-soy planting shift, but basis prices are up in the fog of Mideast uncertainties and strengthened by the updated renewable fuels standard in the U.S. Canola meal supplies remain tight and prices strong following the expanded Canada-China shipments. Prices for soy protein products softened, but scheduled processing plant maintenance is likely to push them up soon, Market Intel sources suggest.
Palm & bypass fat products: Although U.S. inventories of palm products remain high, prices are up a bit. Calcium salt product supplies are tight. Ocean freight challenges — including disputes over Panama Canal passage — are interrupting timeliness of deliveries from Asia.
Amino acids: The European Union’s countervailing duties are taking effect in the lysine market, pushing prices up. Knock-on effects are likely later in the year with the final anti-dumping ruling, sources say. Tryptophan prices are still moving lower but threonine and valine are steady near the bottom of a pricing cycle. DL methionine prices are steady to higher, with the major U.S. plant scheduled for maintenance.
Vitamins: Prices for vitamin D3 continue to soften. Having hit bottom last month, vitamin A prices are trending up but in what sources still call a “buyer’s market”. Similar situation with vitamin E.
Trace minerals: Industrial demand for copper continues to push up copper sulfate prices. Yet tribasic copper chloride (TBCC) prices are softer. Zinc sulfate prices continue to rise slowly while prices for manganese compounds remain steady.
Blood products: Prices are steady with little Easter Holiday effect — as yet — sources say.
P & K: Prices for phosphates are up with the rise attributed to the drone bombing of a Russian fertilizer plant, one of Europe’s largest. Pricing for both potassium chloride (KCl) and magnesium oxide (MgO) are steady to slightly higher.
Urea: Prices are spiking given the closure of the Hormuz Strait, through which much of world’s supply passes. U.S. corn producers expect to limit nitrogen and other fertilizer applications.
Distillers: The upswing in DDGS prices continues on strong exports, even with Canadian distillers going to China, limiting corn distillers use in diets for all species.
Wheat midds: Prices continue to trend lower. Processors are pushing plants harder before harvest, sources say.
Soy hulls: Prices on loose hulls continue to soften while the premium remains for pellets.
Over the horizon… Additional tariff adjustments are in the works, but war in the Mideast is causing oil, gas, and fertilizer market disruption.