Feed market update - 10 December 2014
After peaking last Tuesday, UK feed wheat futures prices have moved lower.
After peaking last Tuesday, UK feed wheat futures prices have moved lower. The May-15 contract closed at £134.95/t this Tuesday, down by £6 from a week before, when it closed above £140/t for the first time since early July. Earlier concerns around potential Russian wheat export restrictions, as well as weather fears in Russia, Ukraine and Australia added a certain amount of risk premium to prices, before subsiding somewhat towards the end of last week. This volatility was also seen in international wheat futures contracts during the last week.
The latest GB animal feed statistics from Defra, released last Thursday (4 December), showed that retail production of animal feed was down by 3% year on year in October. For pigs, compound feed production between July and October was also 3% higher compared with the corresponding time period in 2013.
May-15 Paris rapeseed futures prices have been supported by expectations of a lower EU crop next year, settling at €343/t on Tuesday, up by €5.75 on the previous week. Chicago soyabean futures have also found support, with the May-15 contract closing $19.10 higher on Tuesday, at $390.18/t, compared with a week earlier. UK rapemeal (34%, Ex-mill Erith, December delivery) was £181/t on Friday, up £3 on the week. Hi-Pro soyameal (Ex-Store East Coast, December delivery) was £337/t, down £3 from the previous week.
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