MARKET ANALYSIS

FEED ADDITIVES MARKET: HIGHS FOR BOTH THREONINE & FOLIC ACID

The latest market trends in the feed additives markets sees threonine prices reaching record highs and the price of folic acid back on the rise. Threonine prices hit 6 year high. Threonine contracts continue to close at increasingly high prices. Forward contracts for deals entered into the Glowlit system show 2022 Q1 record prices not seen for the last 6 years. Global supply challenges have removed any hope for price relief in B9 Folic Acid prices. In the last month, prices increased by an average 15.9% globally following a brief downward trend. BASF’s broad vitamins and carotenoids price increase announced last week pushed buyers to the cover their needs in the spot market. Forward contracts for vitamins signed a while back are priced much cheaper than the current

market price. Still, the global shipping crisis creates challenges in supplying these contracts. Buyers can be sure goods are in their hands only when the container arrived in their warehouse. Otherwise they will forced into the spot market, which can be as much as double in price.