Feed market update - 2 July 2014
Nov-14 UK feed wheat futures prices closed at £134.50/t, a contract low, on Tuesday, down £3.10 on Friday’s close and £4 on the start of last week.
Nov-14 UK feed wheat futures prices closed at £134.50/t, a contract low, on Tuesday, down £3.10 on Friday’s close and £4 on the start of last week. As at Monday’s close, Dec-14 Chicago wheat and maize futures were also lower, with maize also at a contract low. The decline in prices came after Friday’s release of the USDA’s Quarterly US Stocks and Acreage reports, which painted a bearish picture. As at 1 June, US maize stocks were 39% higher year on year and were over 3Mt above trade expectations. The US area planted to maize this season was 4% lower than in 2013 but offered few surprises. US wheat stocks were down 18% on the year and slightly lower than anticipated by the trade but plantings were more or less the same as last year.
The latest ADAS Arable Crop Report, released last week, indicated that most UK combinable crops are in a good condition and the first wheat crops may be ready to harvest from mid-July, in line with typical years.
Chicago soyabean futures prices (Nov-14) fell by $26 between Friday and Monday’s close to reach $425.17/t. On Friday, UK Hi-Pro soyameal prices (Ex-store, East Coast) were £345/t for June delivery, up £5 on the week, while rapemeal (34%, ex-mill Erith, July delivery) was down £5 on the week at £193/t. The drop in US soyabean prices was also influenced by the USDA reports; as at 1 June, US soyabean stocks were 7% lower year on year, at 11.03Mt. This was the lowest level of stocks at this time of year since 2004 but was higher than trade expectations. A record US soyabean area has been planted for 2014, 11% higher than in 2013 and, as at 29 June, 72% of the crop was in good/excellent condition.
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