Feed Market Update - 25 February 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
It’s been a bearish week for the grains market. May-15 feed wheat contracts fell over the week closing at £120.50/t on Tuesday 24 February, down £4.50 on the previous Tuesday. May-15 Chicago maize closed at $151.77/t, down $4.82 on a week earlier. Nearby Paris maize contracts have followed the general trend closing €3.75 down on the previous week at €149.25/t. In the absence of major fundamental news, the market appears to lack direction; trading is being influenced mostly by rumours. EU wheat and barley export commitments continued to move strongly ahead of last year’s pace, which reinforces the point that the EU is a key source for wheat this season – but only at the right price.
Prices have increased over the week for both soyameal and rapemeal. The UK rapemeal price (34%, Ex-mill Erith, January delivery) was £190/t on Friday (20 Feb), up £3 from the week before. Hi-Pro soyameal (Ex-Store East Coast delivery) was £320/t (20 Feb), a £5 increase on the previous Friday. The deadlock between buyers and sellers remains in the oilseeds market. The next big event that everyone’s waiting for is confirmation of the South American soyabean crop; harvesting in Brazil will get into full swing in March. With the expectation of a record crop and lower prices, buyers are biding their time.
To read more about the latest developments in the feed market click here.