FEED MARKET UPDATE - 16 DECEMBER 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Despite the USDA increasing its global wheat production forecasts and Argentina cutting export tax on wheat and maize, both US and European grain futures prices closed up on the week yesterday (15 Dec). This is partly due to the US dollar weakening against several currencies. On Tuesday (15 Dec), UK feed wheat futures prices (May-16) closed slightly up (£0.40/t) on the week at £117.20/t. Yesterday both May-16 Chicago wheat and maize futures prices closed up Tuesday-Tuesday. Global wheat stocks forecasts and production for 2015/16 were revised up by the USDA in its latest world supply and demand estimates last week.
In the UK, higher than average rainfall has continued since November and is forecast to remain into the coming week. As at the week ending 26 November the price discount for UK ex-farm gate feed barley compared with feed wheat tightened and so barley could become a less attractive animal feed ingredient. However, over the past two weeks the discount has widened.
Both May-16 Chicago soyabean and Paris rapeseed future closed down on the week yesterday. The fall in soyabean prices last week can be partly attributed to the new President of Argentina’s decision to cut export taxes by five percentage points on soyabeans, in a bid to try and rejuvenate the nation’s agricultural sector. This sentiment was reiterated by the latest USDA supply and demand estimates released last week with global bean trade increased by 0.5Mt from the November forecast. December UK rapemeal (34%, ex-mill, Erith) was down £7/t at £139/t on Friday (11 Dec) compared to a week before. Brazilian soyameal (48% ex-store, Liverpool) also declined on Friday by £6/t on the week to £258/t. Hi-pro (ex-store, East Coast) was priced at £247/t a decrease of £5/t Friday to Friday.
To read more about the latest developments in the feed market click here.