Feed market update - 15 October 2014
Read our latest summary of developments in UK and global markets for cereals and oilseeds.
UK feed wheat futures prices (Nov-14) settled at £114.95/t on Tuesday, up £2.20 on Friday’s close but only £0.45 higher than last Tuesday. Provisional figures for the 2014 UK wheat and barley crops were released by Defra last week and indicated the biggest UK wheat crop since 2008, while barley output is only marginally lower than last year. The AHDB/HGCA Early Balance Sheets, released on Monday, estimate that total animal feed demand for cereals will be lower than in 2013/14, based on the assumption of ‘normal’ weather conditions, lower milk prices and ample forage availability. The October release of the USDA’s world supply and demand estimates was also out last week. There were noticeable increases to production for both EU wheat and maize, which added to the downward sentiment in the EU grain market.
World soyabean production was revised higher by 0.1Mt due to a slight increase to US yield levels. Oilseed prices found support at the beginning of last week, resulting from concerns of dry weather in some parts of Brazil impacting on newly planted crops. However, prices drifted down through the rest of the week. Rapemeal (34%, ex-mill, Erith, October delivery) was reported at £158/t on Friday, down £1 on the previous week. The Hi-Pro soyameal price (ex-store, East Coast, October delivery was unchanged again on Friday, at £318/t.
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