Wednesday, July 6, 2022

Dairy demand pushes up feed grain prices

Strong demand for feed over recent months is expected to put pressure on grain stocks going through to the next harvest. The best advice from the industry following the release last week of the Arable Industry Marketing Initiative (AIMI) report was to secure feed supplies sooner rather than later. Market analysts have called on the cereal and livestock industries to note from the arable industry report that feed stocks, in particular barley, are low. Figures show the strong demand for feed during the drought and other events has resulted in lower stocks of unsold feed grain, despite another year of high yield in cereals. “Based on these figures, and what I see around me, I would expect stocks of feed grain to be tight going through to next harvest,” Federated Farmers grain and seed chairman Ian Mackenzie said. “Based on these figures, and what I see around me, I would expect stocks of feed grain to be tight going through to next harvest,” Ian Mackenzie Federated Farmers grain and seed Chairman  The AIMI survey showed unsold feed barley stocks at July 1 were down 40% on last year. This was a similar amount to 2011, when feed barley became difficult to source toward the end of the year. Unsold feed wheat stocks look healthier, although they are still at a lower level than at this time last year. “I would encourage all grain and seed industry participants to look at these figures carefully and make full use of the tool where possible,” Mackenzie said. “The undertaking of this survey is an industry initiative to address the knowledge gap between growers, sellers and buyers who have professional staff dedicated to monitoring the supply and demand situation.” The NZX Agrifax AIMI survey analysis showed total sales of feed wheat and barley, when including sales of last year’s g
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