Feed market update - 26 August 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK Nov-15 wheat futures moved little Tuesday to Tuesday, closing up £1 at £115/t. Despite a variety of demand-led stories filtering through the international grain markets last week, the pure weight of global supply expectations kept wheat prices subdued. News of strong US weekly export sales lifted grain prices on Thursday but this was only short lived. After the falls in the Chinese stock market on Monday, UK wheat futures initially dropped rapidly on fears of weaker Chinese demand. However, this was offset by the euro strengthening against sterling on the day. With the UK wheat harvest progressing, delivered feed wheat prices have become cheaper relative to imported maize in recent weeks, potentially favouring the use of wheat over maize in rations.
Soyameal prices (Brazilian, 48%, ex-store Liverpool, spot delivery) moved little on the week, up only £1 to £284/t on Friday. In contrast, rapemeal prices (34%, ex-mill, Erith) dropped £7 to £172/t over the same period. On the whole, snippets of price supporting news did not outweigh the downward pressure on the market. Global supply expectations remain high and rainfall in the US was generally beneficial to the soyabean crop there. Oilseed prices received a short-term boost on Thursday, when weekly USDA export sales data were above expectations. However, as with maize, total new crop soyabean sales are still behind last year’s pace. Contrastingly, in Brazil, there has been a substantial increase in the number of ships lined up at ports compared to this time last year.
To read more about the latest developments in the feed market click here.