Last week began with a fall in the London futures markets as weather forecasts in the USA suggested rain might rescue the ailing soya bean crop. Sadly only modest amounts of rain fell in the main growing areas and hot, dry weather is likely to return which means prices are now rising again.
It is possible that the average US temperature for 2012 will be the highest since 1955 which shows how extreme conditions have been.
There have been calls to reduce the amount of biofuel used in the USA to take the edge off the prices, but changing government policy is a very slow process.
With drought also hitting former Soviet Union countries, cutting their export potential and wet conditions delaying harvest and reducing grain quality across Western Europe there is currently no good news for feed prices either on spot or forward for the winter.