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Carwyn Worthington

Senior Trading Manager

Raw Material Market Update Autumn 2021

Raw Material Market Update Autumn 2021

As the summer draws towards an end, farmers will begin to turn their attention to contracting their feed for the winter period, no doubt decisions on whether or not to contract will be the subject of much discussion in the farming community. However, it’s difficult to see what factors would now drive down the November-April period.

Weather has had a major impact this year on crops around the world, droughts stretching from Canada to Brazil has hit wheat, maize, soya and rapemeal crops hard, and month after month, the USDA along with independent analyst’s keep reducing yield forecasts. It’s been a similar story across Europe and Russia with crops being hit by either drought or extreme flooding, this comes at a period when world stocks are already at very low levels and there will be little carryover from one crop season to the other.

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Raw Material Market Update

Raw Material Market Update

The past six months have seen one of the most volatile periods for raw material markets in the last 20 years, with prices across the board substantially up since the autumn. There are several factors that have impacted the high prices we have seen; Brexit, COVID-19, strikes in South American ports, droughts, and floods, but fundamentally it comes down to supply and demand.

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