Feed market update - 1 April 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
May-15 UK feed wheat futures closed at £120.50/t on Tuesday, down £2.10 since the previous week’s close. Chicago May-15 maize and wheat futures followed a similar trend, closing down $4.32 and $6.69/t respectively week on week. The market was weighed down by USDA quarterly stock figures (as at 1 March), which revealed wheat and maize stocks were up 11% and 6% respectively year on year. Maize stocks were the highest for 1 March since 1987, while the change in wheat stocks between 1 December and 1 March is the smallest since 2008/09. This reflects the sluggish pace of US wheat exports so far this season, not helped by the strength of the US dollar.
Chicago May-15 soyabean futures prices closed at $357.57/t on Tuesday (31 March), down $3.12 since the previous Tuesday’s close. UK rapemeal (34%, ex-mill, Erith) was £190/t on Friday (27 March), up £4 since the previous week. According to Strategie Grains, a favourable outlook for European rapeseed yields is not enough to offset a reduction in the estimated planted area and a decline of 10% in EU-28 rapeseed output is forecast in 2015/16, compared with 2014/15. Very early results from the Argentine soyabean harvest, which commenced last week, revealed better yields than expected, which will compensate for damage caused by flooding. Although a useful indication, yields could vary as harvest progresses but as weather prospects look good for the crop, sentiments are currently remaining bearish.
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