Feed buying – when is the right time?
Over the winter several people have asked us to tell them when they should start buying feed forward. Prices have now eased from mid-summer although prices until harvest are not very attractive but won’t get any better. We started buying for the feed groups last week. Interestingly, the forward prices for Rape and wheat are now within a few pounds of where the forward prices were in Jan 2019 for the 2019 autumn so not all bad news.
The £/$ exchange rate is currently the best it has been since 2018 so that is helping but shipping is now very expensive as too many ships are stuck in port waiting to load in America.
Whilst prices look stable at the moment there could still be a few £ to come off but as we have seen in the past, the upside potential is always greater than the downside so on balance our advice is to get some cover now.