Feed market update - 29 April 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
It’s been another bearish week for UK Nov-15 feed wheat futures, closing £4.30 down on the week at £120.05/t on Tuesday, following declines in global wheat and feed grain prices. There has been a lot of talk about US maize planting progress, with rumours of good weather in the past few days. However, with data released on Monday showing planting progress to be behind the 5-year average, markets could just as quickly reverse – there is still a long way to go for the crop. Pressure has also come from 12 US states detecting a deadly strain of avian influenza in poultry, which could reduce feed demand. Various market reports in the last week have also supported expectations of good production prospects. Also contributing to the fall in UK wheat values was sterling at its highest level against the US dollar since the beginning of March, as of yesterday.
UK rapemeal prices (34%, ex-mill Erith, spot delivery) rose £1 on the week to £188/t on Friday, while soyameal (Brazilian, 48%, ex-store Liverpool, spot delivery) fell a further £1 to £316/t. Soyameal remains at its cheapest level in over 3 years. The big picture for oilseed markets remains unchanged, with large soyabean crops in the Americas weighing on global prices and an expectation that US farmers will plant another big area in 2015. Another round of Brazilian trucker strikes has threatened the movement of commodities to ports and may provide mini rallies in oilseed prices but should be treated as a short-term issue for the market.
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