Feed market update - 21 May 2014
Latest developments in cereals and oilseeds markets affecting pig feed.
Nov-14 UK feed wheat futures dropped below £150/t last week, undoing the entire price rally that was initiated by the Ukrainian situation, while May-14 UK feed wheat dropped £5.95/t over the week. This followed similar drops in global maize markets. Strategie Grains increased its estimate of EU wheat and maize production in 2014, but left the barley estimate unchanged. This is insulating European markets from some of the drought issues in key US wheat states. In general, for feed grains, the upward momentum in prices has now been reversed as a result of the increase to the USDA’s estimates of global maize supplies next year, coupled with higher maize planting over the week.
UK (Hi pro, ex store, East Coast) soyameal prices as of Friday fell £4 to £363/t while rapemeal (ex-mill, Erith) rose £3 to £212/t. These weekly prices are now available through the BPEX website, by clicking here. Nearby futures prices have also fallen, although new crop futures prices changed little on the week. Planting progress for US Soyabeans advanced last week by 15%, bringing the national total planted to 20%.This, in combination with reasonable rapeseed conditions in Europe, has left markets in a fairly benign state for now