Protein Supplies Remain Tight

MBM prices moved higher today on continued tight supply, ruminant prices are a “no-quote” from a couple of producers with material being used internally and production limited to a point where spot material is unavailable. Porcine trading was higher and there were price offer indications as high as $700 FOB into the pet food sector. Formulation constraints in a tight market are driving the prices to record spreads to soybean meal.

Feathermeal prices have moved higher this week, but on a per unit of protein basis remain underpriced relative to other animal protein alternatives. The prior three year average premim for Carolinas FM to Eastern MBM is $94, today that spread is a discount of $7.50. With the tight overall market, it’s reasonable to expect feathermeal prices to move higher as the market moves into May.

Figure 1.

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