Palm Kernel (PKE) Update from ADM for February 2016
February 4, 2016
Southern Field Days
The Southern Field Days are on once again from Wednesday 10th – Friday 12th February. ADM team members will be attending at site A170 (in the pavilion), and we look forward to catching up with many of you from the lower South Island.
Palm Kernel Market Update
The palm kernel market in the origin has remained steady while the market goes through the low season of production. The Chinese are currently commencing their New Year celebrations (officially February 8th), so selling will be slowed with many on an extended break. Accordingly, there will be limited pressure on crushers to move stock in the foreseeable future.
In NZ, most regions have had very favourable conditions for pasture growth of late, which has been welcome news in these challenging economic times. As a result, while PKE continues to be executed against existing forward contracts, fresh demand has been limited by new pasture and cash flow constraints. Additionally, rain is in the forecast for many regions and the window of concern for available feed is shrinking day by day.
Prices for Palm Kernel continue to range from $215 - $230 x-store, depending on timeframe.
On a positive note it was great to see the Black Cap’s smash the Aussies at Eden Park yesterday. Talking to the ADM Grain team in Adelaide this morning all they have to crow about is solid rain up and down the east coast of Australia which is setting up the winter cropping program for a great start. They’re experts at changing the subject after a big loss!
If you have any questions don’t hesitate to call the team on 0800-123-PKE.
ADM New Zealand Ltd.