Global surplus should help ease feed grain prices

By Freddie Dawson

- Last updated on GMT

Related tags: Wheat, Germany, European union, Eu

Experts predict that animal feed grain prices will become less of an issue for meat producers in the near future, despite the weather in Russia drastically reducing worldwide supplies.

Analysts at the recent Home Grown Cereals Authority's (HGCA's) Grain Market Outlook Conference said there were no global shortages of wheat, it was more a matter of moving surpluses around the world to meet regional shortages.

According to HGCA senior analyst Jack Watts, some European producers will actually struggle to sell their feed crops.

The EU has been largely unaffected by adverse weather and both the UK and Germany are forecasted to have reasonable yields, which means that both nations will become key suppliers. Because of the poorer quality of the German crop, only 45% will be used for milling (down from a typical 9095%), which will mean more entering the feed market, driving down price.

Maize is also helping to stabilise the feed market, analysts said. The crop is used to meet 70% of the world's feed needs, although much less is used in the EU. However, early indications of a worldwide maize surplus will help to offset other grain shortages elsewhere.

Related topics: Supply Chain