Mike Brumm Commentary, Soybean Meal Availability, August 20th 2014
I’ve had 2 contacts this morning asking about soybean meal availability and options for diets in late September and early October. If you haven’t been paying attention, the ‘trade’ fears that the upper Midwest will run out of soybeans (and soybean meal) prior to the new crop beans showing up at processors.
As I write this blog, ADM-Mankato is quoting cash soybean meal at $659.70/t with a +$225 basis. Old crop cash beans are $13.33.
Is this a trade ‘scare’ or is there a real shortage looming? I don’t know, but at $659.70/t, swine diets will change drastically.
In talking with several producers around the US this morning, it doesn’t appear that this sudden spurt in pricing has caught their attention yet. For some, they rely on toll millers to make the purchase and supply decisions and the message hasn’t filtered down. For those that process on-farm, they don’t always follow pricing until time to receive another load of meal.
If you’ve not already done it, look at using the maximum amount of synthetic tryptophan in grow-finish diets. This will drop more than 100 lb/t of sbm from the diets.
Carefully review your diets with your nutritionist to see what are your options for ingredients. Be sure your mill is in on the discussion as availability of alternative ingredients may become an issue.
New crop beans will begin appearing at processors in early-mid October. Until then it appears we’re in for a wild ride!