Feed market update - 22 April 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
With the May contract on UK feed wheat futures coming to a close, attention is squarely on the November 2015 contract for market direction. UK Nov-15 feed wheat futures closed at a six and a half month low on Tuesday at £124.35/t, down £3.90 from the previous Tuesday’s close. Markets have been on ‘weather watch’ recently with all eyes on how spring weather could potentially be impacting on the size of crops for harvest in 2015. After a period of dryness, welcome showers and storms hit some key US hard red winter wheat growing regions last week. Elsewhere, good weather and sowing conditions have increased German forecasts for the size of its wheat harvest. In contrast, current estimates of the size of Ukraine's barley crop could be revised down after insufficient sowing progress recently. However, this might point to more land being available for the later-sown maize crop.
UK rapemeal prices (34%, ex-mill, Erith) rose £6 on the week to £187/t on Friday, while soyameal (Hi pro, ex store, east Coast) fell £5 to £306/t. This has left soyameal at its cheapest level in over 3 years. There have been various reports of good oilseed demand levels from across the globe in the past week. US soyabean monthly crush data for March was the fourth highest on record. Export demand for old crop US soyabeans also showed some recovery according to the latest USDA export sales data, after two weeks of lacklustre progress. The South American soyabean harvest continues, with the Rosario Grains Exchange revising its estimate for 2014/15 Argentine soyabean production 1Mt higher to 59Mt.
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