Feed market update - 4 February 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
After dropping to a 4-month low in the middle of the week at £122.50/t, UK May-15 wheat contracts bounced back on Tuesday (3 Feb) increasing £3.55 over the day to close at £126.05/t; overall this was down £1 from last Tuesday (27 Jan). Recent data indicate a 1.3% decline in UK compound feed demand so far this season (July-November). While consumption of compound feed is up for pigs and poultry, this is offset by lower usage by cattle and sheep. As a result, in the January UK supply and demand estimates, wheat demand for animal feed is estimated 176Kt lower than November’s estimate. However, as maize and barley have become more price-competitive against wheat in certain regions, usage estimates for both were increased.
UK rapemeal (34%, Ex-mill Erith, December delivery) was £189/t on 30 Jan, down £1 on the week before. On the same date Hi-Pro soyameal (Ex-Store East Coast delivery) was £330/t; this was £11 higher than the last recorded price on 16 Jan. Informa Economics raised its estimates of 2014/15 Argentine corn and soybean production but left its soya production estimate for Brazil unchanged at 93.5 Mt. Informa put Argentine soybean production at 57Mt, up 1.5Mt from last month.
To read more about the latest developments in the feed market click here.