Livestock feed summary: Opec+’s announcement to cut oil production is creating turbulence among oilseeds. Wheat and sorghum prices remain steady, however.

After losing nearly 10 percent over a month, the first week of April showed a slight recovery in Italy’s soybean prices listed on domestic commodity exchanges. Supporting quotations once again were the ongoing dynamics in international markets, influenced by lower than expected estimates released by USDA on upcoming sowings in the United States. This was compounded by the unexpected decision by Opec+, the organization of oil-exporting countries, to cut oil production by 1.2 million barrels per day, which caused oil prices to rise at the start of the week and, as a cascade, upward tensions in the oilseed market. In contrast, the week saw consolidation for major feed grain prices, which were effectively unchanged from the last week of March. There was slight decline only for sorghum, marked by limited demand. Among protein flours, declines for sunflower was aided by increased supply.

Soybeans, signs of recovery

After five consecutive declines, the week saw an increase of €8/ton for foreign-sourced soybeans quoted on the Milan marketplace, with prices recovering to close to €530/ton (ex-arrival). The gap from last year remains wide, at -21 percent. Remaining in the soybean complex, slight “plus” sign in Milan for foreign protein soybean meal (+3 €/t), which reaches an average price of 576.50 €/t (ex-arrival), 21 €/t more than the similar domestic product. On an annual basis, a negative change, albeit of limited magnitude (-4%), is maintained.

Protein flours: decline for sunflower, stable for rapeseed

Among protein flours, the week showed a new decline-the fourth consecutive one-for sunflower flour, which lost €9/ton in Bologna, bringing it below €360/ton (ex-arrival), at its lowest since last September and down 18 percent from a year ago. It was a stable week, on the other hand, for rapeseed meal, whose prices remained at below €390/ton (ex-arrival) in Bologna, a level that still remains 21% lower than 12 months ago.

Barley, -36% compared to a year ago

The start of April was marked by almost complete stability for barley and zootechnical soft wheat quoted on the main Italian Commodity Exchanges. In Bologna, domestic heavy barley remained firm for the second week in a row at €240/ton (ex-works), still down sharply in comparison with a year ago (-36%).

Soft wheat, it’s flat calm

It was a week marked by stability also for livestock wheat, which remains unchanged at an average price of €271/t (ex-arrival) in Bologna. The decline compared to last year remains more than -30%.

Sorghum, slight decline

There was slight weekly decline for sorghum, down €5/ton in Milan and now standing at €283/ton (free on arrival), 25 percent less than a year ago.

Source: terraevita.edagricole.it