Feed market update - 9 July 2014
Latest developments in cereals and oilseeds markets affecting pig feed.
Nov-14 UK feed wheat futures prices have continued to decline throughout the week, closing at a new contract low on Tuesday, at £133.00/t, down by £1.50 on the week. Historical contract lows were also set on Tuesday for Dec-14 Chicago wheat and maize futures prices. The sustained price declines for grains have occurred as a result of the bearish influence of last week’s USDA Quarterly Stocks and Acreage reports and continued favourable growing conditions. According to Reuters, US crops have benefitted from ‘near ideal’ conditions for growth and in the latest USDA crop progress report, 75% of the maize crop was in good/excellent condition, a 15-year high.
Oilseed prices have also been in decline. New crop Paris rapeseed futures prices fell by €6 over the week, with the Nov-14 contract settling at €339.00/t on Tuesday. UK prices have tended to follow the general movement of the Paris futures market. Nov-14 Chicago soyabean futures prices closed at $410.11/t on Tuesday, a week-on-week decline of $11.48. On Friday, UK Hi-Pro soyameal prices (Ex-store, East Coast) were £329/t for July delivery, down £13 on the week, while rapemeal prices (34%, ex-mill, Erith, July delivery), were down £9 on the week at £184.00/t. Rapeseed harvesting has begun in France, and initial yields are pointing towards a bumper EU rapeseed crop, should weather conditions remain favourable. The USDA has also reported record conditions scores for US soyabeans, with 72% in good/excellent condition, a 20-year high at this stage of the season.
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