Feed market update - 19 November 2014
UK May-15 feed wheat futures gained strongly through last week, closing on Tuesday at £131.25/t.
UK May-15 feed wheat futures gained strongly through last week, closing on Tuesday at £131.25/t. Paris Mar-15 maize futures climbed only €1.25 to €153.75/t over the same time. Weaker sterling against the euro over the period was a key driver of the greater gains in UK feed wheat values. A number of weather issues re-emerged in global grain markets over the past week, notably in the US and Russia/Ukraine, adding upward pressure to prices. Results from the Early Bird Survey of planting intentions for 2015 suggest a 5% reduction in the UK wheat area. Winter and spring barley, pulse and fallow areas are estimated to be higher on the year, potentially showing the impact of the 3-crop rule on planting decisions.
Hi-Pro soyameal prices (Ex-store East Coast, November delivery) were up £2 on the week last Friday at £350/t. Rapemeal prices (Ex-mill Erith, November delivery) followed these gains, up £2 to £170/t. GB soyameal prices are currently at a 5 month high, with strong soyameal demand in the US driving prices. While gaining some strength from soyameal markets, spot GB rapemeal values now equate to 49% of soyameal values, compared to 61% in mid-June. According to the Early Bird Survey, the UK oilseed rape area is seen down 4%.
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