Feed ingredient report
Using March 2017 as base with an outlook to September 2017 - Executive Summary
All forecasts of future feed ingredients and finished feed prices are based on the opinion of an independent feed consultant contracted to SAPA. These forecasts are for guideline purposes only and SAPA does not, in any way, warrant that these predictions will be realised. SAPA therefore cautions any user of this information to treat it in an appropriate manner.
The price of international maize has been very stable for a reasonable period of time and has been trading between $3.60/bu and $3.80/bu in the last few months for the May 17 contract on CBOT. The USA
has harvested the biggest ever crop in their history. South America crop prospects also look very good for 2017. World stock levels of maize are also in good shape. Imports are finished and the local market has switched over to local SA maize. The prospects for 2017-2018 are looking very favourable for a big crop of 14,5 million mt and more and low maize prices compared to 2016-2017. We could see white maize being used in animal feed for the 2017-2018 season.
Soya meal prices have been stable in the last few months trading between $310 and $325/shortton. Soya meal is currently trading at under $315/shortton for the May 17 contract on CBOT. World production for soya is currently at a good levels and stocks are comfortable.
The rand has had one of its most volatile moves in many years, peaking at R18/US$ and is currently trading at about R13.35/US$. The forward prospects of the rand is a trading range between R13.20 and R15/US$.
Tables one to three are the estimated feed ingredient prices and feed prices for March 2017, and a forecast to September 2017 for feed ingredient prices. Charts one and two show the historical estimated feed prices from Jan 2007 to March 2017, with a forecast to September 2017; charts 3 and 4 cover the same period for yellow maize and soya oilcake.¡