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The cost of producing poultry has continued its upward trend, leading to many in the industry facing economic uncertainty – and some considering ceasing poultry production altogether. For egg producers specifically, the speed and scale of rising costs is unprecedented; the last two years alone have seen significant increases that can be partly attributed to feed and energy costs. Compared to 2016-2020 prices, the increase in feed price will add £7.50 to the cost of keeping a hen, or 30p/dozen eggs (Joice and Hill, 2022).
It comes as no surprise that alternative ingredients are being sought as a cost-effective solution. This has already been seen in broiler production, with the move away from soybean meal due to its relatively high price and environmental impact concerns; the conventional diet for layers for peak production generally consists of soya, as well as wheat and maize. However, the change in ingredients inclusion mean a change in nutrient specifications and vitamin and mineral absorptions – something that must be considered to optimise animal performance.
The U.S. government is nearing an agreement to fund a late-stage trial of Moderna’s mRNA H5N1 vaccine, the Financial Times reported, as the outbreak spreads. Federal funding from the Biomedical Advanced Research and Development Authority (BARDA) could come as soon as next month and would include a promise to procure doses if late-stage trials are successful, the report said, citing people close to the discussions. As we previously reported, the U.S., Canada and Europe have been in active talks with CSL Seqirus and GSK to acquire or manufacture H5N1 vaccines, which could be used to protect at-risk poultry and dairy workers, veterinarians and lab technicians. The U.S. government is also in “active conversations” with mRNA vaccine makers Pfizer and Moderna on a potential H5N1 vaccine for humans.
The raw sugar market opened lower today and immediately looked to challenge the floor of the 18-19c/lb we have been in for much of the last month, quickly reaching as low as 18.03clb. However once again the floor held firm as the Jul’24 raw sugar futures quickly recovered back toward 18.10c/lb and didn’t look back for the rest of the session. From there followed a flurry of buying, lifting prices 20 points to finish out the morning.- Through the afternoon prices bounced fairly rapidly between 18.3c-18.4c/lb on some of the largest volumes seen in recent sessions, with a final 4k lot flurry into the close, settling for the week at 18.32c/lb.
The white sugar market again fairly closely matched moves on the No.11 through the morning, opening lower before strongly rallying up over 12USD/tonne to almost 548USD/tonne by the halfway point of the day. From here prices hovered around 545USD/tonne for much of the afternoon, short of a sharp drop down to 541USD which was quickly reversed. The last hour or so saw more persistent selling into the close, finishing the week at 541.5USD/tonne and again seeing the Aug/Jul’24 white premium shrink, now at 137.6USD/tonne.
Last week saw the International Grains Council (IGC) revise down its global harvest production forecast for 2024 to 795 million tonnes from 798 million tonnes last month. Meanwhile, consumption is anticipated to exceed 800 million tonnes, continuing the trend of declining world end stocks. Weather issues persist in western and northern Europe, adding to the ongoing concerns for the upcoming harvest. However, it is Russia stealing the headlines with forecasts slumping significantly in the last couple of weeks. Russian wheat prospects have been dealt some big weather hurdles in recent weeks, from dryness to frosts. As we reported in our last article, frost damage has led to regions declaring a state of emergency. In the last few days, suggestions have emerged that up to 2 million hectares of wheat crop could have seen notable frost damage. Forecasts for total Russian wheat production for harvest 2024 are seeing remarkable downgrades. For example, IKAR, the Russian consultancy, estimate a crop of 81.5 million tonnes, down from 93 million tonnes only a few weeks ago. This has reduced IKAR’s export estimates to 44 million tonnes in the coming year, down from 52 million tonnes in a matter of weeks.
World Farming Agriculture and Commodity news - Exclusive -Short update - Fourth Week May 2024
Commodities June 02
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