Feed market update - 17 September 2014
Read our latest summary of developments in the global cereals and oilseeds markets
UK feed wheat futures (Nov-14) closed at £112.60/t on Tuesday (17 September), down £5.45 from a week earlier but slightly higher than Monday’s settlement price of £112.00. The price collapse seen over the past week was largely due to the strong bearish message provided by the latest USDA supply and demand estimates released last Thursday. Global wheat production was raised to a record 720Mt, while world maize production was increased to a record 987.5Mt. Although global demand estimates were also increased for wheat and maize, these were insufficient to offset the rise in production levels, indicating a higher carryover of stocks into 2015/16.
The upward revision of global soyabean production by the USDA last week was more dramatic than the changes made to cereal production forecasts. A further 6.4Mt was added to last month’s estimate, bringing global soyabean output to a record 311.1Mt. Chicago soyabean futures (Nov-14) closed at $360.33/t on Tuesday, down $4.41 from a week earlier. As at Friday (12 September), Hi-Pro soyameal prices (ex-store East Coast, September delivery,) were £329/t, £6 lower on the week. Rapemeal prices (ex-mill Erith, September delivery were £167/t, £4 lower compared with a week earlier. Strong demand from China for US soyabeans in 2013/14 provided an appreciable level of support to prices but a possible fall in US exports to China this season could amplify the downward pressure on prices.
To read more about the latest developments in the feed market click here.