We have seen currency fall from a high of over 1.43 $/£ to below 1.33 $/£ over the last 3 months. It is currently at just below 1.34$/£. This has a major impact on the cost of importing US$ based products which include materials such as soya, rape seed meal, fertiliser and molasses.
Alongside the direct impact of currency conversion from US$ to UK £ on molasses price there is also the effect of currency on fuel prices. May 2018 saw the largest increase in UK fuel prices since records began 18 years ago. This increases the cost of delivering materials from UK import locations to the customer.
The world oil price has increased significantly over the last 12 months putting upward pressure on ocean freight which again has a major impact on molasses prices.
The molasses market itself is currently relatively stable in $ terms unlike many other feed costs (soya and rape seed meal +25% since Nov 2017). However, the molasses market is expected to firm as we move in the Q3-Q4 2018.
Overall this is having a significant impact on the cost of molasses in the UK and to reflect these rises NWF Agriculture will apply a price increase as of the 1st July. While the exact increase will depend on how currency develops we expect this to be around £5/mt.
If you are planning to or are thinking about using molasses over the summer please contact your NWF Sales Specialist or call Sean Merryweather on 01829 797122 to avoid paying the higher prices.
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