Market Intel

Valves to Loosen?

Besides the oil valves screwed down in the Persian Gulf, the ongoing war restricts feed grade non-protein nitrogen sources, including urea.

Several other valves — tariffs, ocean freight costs, Panama Canal — are less than wide open, continuing to pressure micro ingredient prices in international and domestic markets.

Soybean meal: Basis prices are steady with board prices moving sideways to slightly higher. Canola meal is following suit, with the protein market fully onboard with Canada’s new China “cars for canola” trade deal. Prices for soy protein products remain in step with SBM.  

Palm & bypass fat products: Palm product prices have moderated, Market Intel sources report with forward pricing at good values. Current Indonesia and Malaysia supplies appear higher than expected. There’s also is relief from recent tighter calcium salts supplies. Meanwhile, by-pass blend prices are up with sources reporting reduced summer production and longer purchase lead times.

Amino acids: DL methionine prices continue to rise on supply constraints — up 35-50% in the past month — while analog prices are up only slightly. Lysine prices are beginning to relax with supplies more available. Threonine prices are steady with tryptophan lower. 

Vitamins: Supplies are available across the board, but prices are rising due to higher manufacturing and transport costs, which impacts all imported micros. Also, vitamin D₃ prices are up due to delayed new production, while vitamin A and vitamin E prices continue to rise.

Trace minerals: Industrial copper metal prices continue skyward, dragging along  copper sulfate and tribasic copper chloride (TBCC). Zinc sulfate prices also continue to rise with prices for manganese compounds a little higher.

Blood products: An increasingly mixed bag with bovine product in short supply and plenty of porcine available. Despite reduced “holiday effect” this year, sources still expect impact from Independence Day 250.

P-K-Mg: One of the world’s largest phosphate suppliers is curtailing production as the USDA considers steps to increase domestic fertilizer production. Meanwhile, feed grade phosphate prices are up with potassium chloride (KCl) prices steady. Magnesium oxide (MgO) prices are moving up slowly. 

Urea: On-and-off negotiations to reopen the Hormuz Strait continue to constrict global urea supplies and impact prices. U.S. corn producers appear to have adapted with precision nitrogen application and modified yield expectations.

Distillers: DDGS exports are riding high, keeping prices up, higher still for “dairy quality”.

Wheat midds: Prices are creeping back up ahead of the wheat harvest. Sources say there are “no extra” midds around.

Soy hulls: Prices on loose hulls are lower still in the Tri-State. Pellets still get premium prices.

Over the horizon… Resolution to war — or at least an enduring cease fire — to let oil and petroleum-source products exit the Persian Gulf?

Coming soon: WASDE June Report.

Questions?

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