Feed market update - 7 May 2014
Latest developments in cereals and oilseeds markets affecting pig feed.
May-14 UK feed wheat futures closed at £167.40/t on Tuesday, down £1.60 from the previous week, whereas Nov-14 UK feed wheat futures closed up £0.65 at £158.80/t. While new crop prices are up £2.40/t compared to 6 months ago, they are down £10.80/t compared to last year, indicating some long term price volatility. Currently, prices are showing no real direction or trend, resulting from the uncertain political situation in Ukraine as well as ambiguity surrounding the weather in both Ukraine and the US. Chicago nearby wheat futures climbed to their highest level in 13 months with drought in key US states continuing to threaten winter wheat supplies. The market is more sensitive to crop condition this year, given the year-on-year reduction in US wheat stocks.
UK (Hi pro, ex store, East Coast) soyameal prices were down on Friday to the lowest reported since the end of January. UK rapemeal (ex-mill, Erith) was down £14 from the previous week and also the lowest price reported for 3 months. The Brazilian Agriculture Minister has announced this week that the Brazil grain belt is likely to produce a record 89-90Mt of soyabeans this year, up from Conab’s last official forecast of 86.1Mt. Brazil exported a record 8.25Mt of soyabeans in April, indicating that logistics are less of an issue than last year, allowing the global market to be more responsive to Brazil’s strong production.