News & Views
Feed ingredients become cheaper than before the war in Ukraine
July 8, 2022 By Hatchery International staff
Maize, wheat and soybean prices have fallen more than 25 per cent from price peaks experienced earlier this summer. It seems these common fish feed ingredients are now trading at prices below the level from when Russia invaded Ukraine in late February.
Market analysts point to an increase in harvesting and supply of feed raw materials that now signals weakening prices for the second half of the year.
The Wall Street Journal has reported that Russian grain shipments have resumed “and there has been no letup in vessels leaving Russia’s busiest Black Sea grain terminals”
The U.S. Department of Agriculture has also reported that it has raised its wheat production forecast by 8 million bushels and a crop progress report has shown winter wheat harvests were 41 per cent complete.
Due to increases in energy prices, shipping and raw materials, fish feed prices have risen sharply this year. SalmonBusiness reported on June 29 that feed prices approached $1.50 per kilo in the first quarter, a record high.
Some feed firms have taken significant steps in response to the war. In early March, BioMar announced that it would cease trading with Russia following the invasion of Ukraine. The move includes sales of finished products as well as the sourcing of raw materials and applies to all BioMar entities around the globe.
That same week, SHV, the Dutch conglomerate that owns feed producer Nutreco and its aquafeed subsidiary Skretting, said it would not undertake any new investments, projects or exports to Russia. Others are continuing with a business-as-usual attitude.
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