Feed market update - 1 October 2014
UK feed wheat futures are at their lowest level since July 2010, while Chicago soyabean futures are at their lowest since February 2010.
UK feed wheat futures (Nov-14) closed at £107.70/t on Tuesday, down £2.05 on the week. They are now at their lowest level since July 2010. Chicago wheat futures (Dec-14) closed marginally higher this week at $175.53/t, up $0.65 compared with last Tuesday, while Chicago maize futures (Dec-14) declined (by $1.87/t) over the week to settle at $126.28/t.
In its September report, the International Grains Council (IGC) further increased 2014 global grain production forecasts, although they remain behind the latest USDA levels. These latest revisions continue to add to a growing sentiment of a high global market supply. This includes the EU, with both wheat and maize production revised higher by the IGC last week which will result in the European feed grain market enjoying high supplies.
Over the past week, Chicago soyabean futures (Nov-14) declined by $8.45 to $335.53/t by Tuesday. Nearby futures prices hit their lowest level since February 2010 given favourable harvesting conditions. Hi-Pro soyameal prices (ex-store, East Coast, September delivery) were £318/t last Friday, down £10 on the previous week.
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