PKE market firm for start of 2017
January 19, 2017
NZ Supply & Demand
As is typical for summer demand for PKE is increasing at a steady rate. Only rain and a surge in pasture growth can halt the increase. Historically March is peak demand for PKE. Accordingly NZ prices have risen to $230mt+ with some reports as high as $260 in Northland.
There are some indications of tight supply nearby in the industry, however ADM is well placed for peak demand. While some spot demand is appearing prices have not yet surpassed drought levels.
Farmers should be aware of PKE price moves as shipping lead times may cause unsuspected price spikes. Clients are increasingly incorporating zinc into feed ahead of facial eczema risk.
Origin Supply & Demand
Origin supply remains at seasonal lows which has contributed to the recent appreciation in prices. Supply can be expected to increase from mid-year onwards. Global demand will continue to be a major influence for pricing in the Asia Pacific region.
Prices remain well above lows but well below the peaks of 2014. European demand appears to remain static at present.
Soft commodity prices, including grains and oilseeds continue to bounce along the bottom of the range. Barring a major weather event this is unlikely to change anytime soon. Australia remains on track for a record crop and this should suppress domestic grain prices in NZ.
Staff Member Focus
Andrew is the friendly voice you are most likely to get when dialling 0800-123-PKE, and takes care of orders and spot contracts. Andrew holds a B.Ag.Sci and MBA from Massey University and spends his spare time with his family enjoying the outdoor activities.
Andrew has been with ADM for 15 months, joining us after a stint in Western Australia.