Favorable Prices Despite Shortened Work Week

Last week in America, everything closed on Thursday, July 4th, and many businesses combined four days.

In the corn market, prices for the new crop began to correct, while prices for the old crop simultaneously turned upwards. Buyers who cannot wait for the new crop will have to pay more to obtain goods.
Currently, the weather forecast is favorable for corn crops, while reports on the state of corn crops are also improving week by week. It seems that late planting of corn has proven to be a minor issue, although many had predicted otherwise.

For old soybean crops, last week was favorable, although not much happened due to the shorter work week in America.
Weather conditions for soybean meal are also extremely favorable for most of America, which is also true for the soybean crop report. Most experts believe that prices for old soybean crops will remain very high, but at the same time, there is plenty of room for new crop prices, which should significantly drop. There are indications that soybean and soy prices will fall by approximately USD 30 per ton.
Today’s price for GMO FREE soybean meal with a minimum of 45.5 percent protein on the Chicago Mercantile Exchange is around 4.70 HRK/kg + VAT, which is the highest price in the past year.
Although there were indications that a ship with genetically modified soybean meal would arrive in Rijeka in mid-July, it turned out that additional time is needed for domestic importers to obtain all necessary permits for the import and market placement of genetically modified soybean meal.
Until further notice, Croatia will meet its soybean meal needs from the port of Koper, where it is possible to load both GMO and GMO free soybean meal.

Fishmeal prices in Peru and Chile are continuously falling. According to trading reports, most current sales are based on small lots that can cover current demand and wait for further price drops in the market.
Depending on the report you read, estimated fishmeal stocks range from 200,000 mt to 300,000 mt, but most reports lean towards the figure of 300,000 mt.
About 200,000 mt of catch remains until the quota, which expires on July 31st, will further increase stocks by 50,000 mt of fishmeal.
On August 31st, the catch in the north ends, with another 350,000 mt remaining, which will be converted into an additional 80,000 mt of fishmeal.
Producers hope for interest in fishmeal in the coming days before stocks increase further and prices plunge downwards.
Rumors from China suggest the sale of fishmeal at a price even USD 50/mt lower, which will cause losses for Chinese importers, but at the same time, it is better to get rid of old stocks before prices drop further.

Iva Marđetko Mateš, Vajda Elvit