FEED MARKET UPDATE - 02 DECEMBER 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK feed wheat futures (May-16), closed at £117.65/t yesterday (1 Dec), down marginally (£0.40/t) on the previous week. Chicago wheat futures (May-16) and Paris wheat futures (May-16) also closed down on Tuesday, compared to the week before. The lack of EU export demand continues to offer little support to prices. Season to date (to week ending 25 Nov) soft wheat export licenses issued, at 8.7Mt, are lagging behind last year’s pace and only 31% of full season forecasts so far. While cumulative EU barley exports currently exceed last year’s volumes, the pace looks to be slowing, with only 97Kt of licenses issued in the latest week. UkrAgroConsult has reported that recent milder weather benefited winter crops in Ukraine but still, nearly 36% of winter crops were rated ‘poor’ as at 28 November.
In contrast to grain markets, oilseed futures were generally up on the week. May-16 Chicago soyabean futures closed at $329.74/t on Tuesday (1 Dec), up by $9.28/t on the previous week. Paris rapeseed futures also increased, by €5.50/t over the same time period, settling at €382/t on Tuesday. Vegetable oil prices have received support from the strength of palm oil markets, with the arrival of monsoon rains in key palm oil producing regions expected to impact on production. UK rapemeal prices (34%, ex-mill Erith, spot delivery) declined by £2/t on the week to £148/t on Friday (27 Nov), while soyameal (Brazilian, 48%, ex-store Liverpool, spot delivery) increased by £3/t to £259/t. Hi Pro soyameal prices (ex-store, East Coast, spot delivery) also increased over the week, by £1/t, to £245/t on Friday.
To read more about the latest developments in the feed market click here.