Feed market update - 19 August 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK Nov-15 feed wheat futures fell (£5.25/t) over the week and settled at £114/t at Tuesday’s close (18 August). Chicago (Dec-15) wheat and maize future prices also followed the downward trend. Last week, the latest global supply and demand estimates released by the USDA were the main focus of the market. Wheat estimates pushed prices lower as global production was increased, stemming from higher forecasts in Russia and Ukraine, which offset a lower than expected crop in Canada. It was expected that maize production and stocks were going to be cut by the USDA. However, this was not the case. Against the July forecast, global production was revised 1.5Mt lower but was more than offset by a higher opening stocks forecast.
As at Friday, Brazilian soyameal was £283/t, down £5 week on week. In its latest monthly report, the USDA raised its 2015/16 US soyabean forecast to 107Mt. The general assumption was that US soyabean production would be revised lower but the actual estimate was around 3Mt over the highest prediction. Oil World (www.oilworld.de) has increased its forecast of Brazilian soyabean plantings for the coming growing season. The area is forecast at a record 32.8Mha, up 3% year-on-year (subject to weather).
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