Feed market update - 14 May 2014
Latest developments in cereals and oilseeds markets affecting pig feed.
May-14 UK feed wheat futures closed substantially lower at £157/t on Tuesday, down £10.40 from the previous week. New crop UK wheat Nov-14 futures fell £6.30 over the week to £152.50/t, while Paris Nov-14 maize fell £5.46 to £153.03/t. Friday’s USDA supply and demand estimates showed an increase in maize production, with positive forecasts for the 2014/15 season adding further weakness to prices. Maize planting in the US, the world’s largest producer, progressed rapidly last week to move ahead of the 5-year average pace, alleviating markets’ fears of delayed planting. 79% of maize was planted in Ukraine as of 8 May, indicating a rapid pace similar to last year. However, with access to finance for key inputs restricted, a 5-6Mt drop in production is likely next season.
UK (Hi pro, ex store, East Coast) soyameal prices as of Friday were little changed on the week at £367/t while rapemeal (ex-mill, Erith) prices fell £15 to £209/t, moving both protein meal prices to their lowest levels in 5 months. China’s government started selling soyabeans from state reserves from 13 May. The auctioning of soyabeans from state reserves is likely to reduce the need for imports.