PKM
- Price gap between spot and long (6/12 months) is reduced to $14/T, which puts the spot price now at sub $300…. Great News!!!
- We still believe the price gap will close and become equal.
- On a slightly negative point, Covid is still having a major issue on labour in Asia and Argentina, which unless sorted reasonably soon (unlikely) is holding the PKM and Proteins (CDDG, SBH, SM) prices very firm at Origin.
- Origin forward sales are now being purchased out to early October.
- Our belief is that around 80% of the PKM contract book is still unbought & therefore we believe there may be an importer price war soon?
NZD
- NZD is holding up quite well at this point, but any decline will increase commodity prices domestically with a firm FOB.
If concerned around product pricing, a short term contract of 3/6 months, for a bit of cover, would be a good option.
Call us today for product or any questions 0800 4AGVISION (0800 424 847)
