Feed market update - 21 January 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
The value of UK feed wheat futures has dropped to a two month low following two weeks of steady decline. May-15 UK feed wheat futures closed at £130.50/t on Tuesday 20 January, down £3.15 on the previous week. The UK market trend is typical of other wheat futures. Contrary to expectations, strong UK maize imports have continued. At the same time, HMRC revealed that wheat exports for November were down 12Kt in comparison to October, although the UK remained a net-exporter. Strong exports are needed to reduce the potential carry-over into 2015/16. However, the weakening euro is making UK wheat less competitive on the European market. The value of the euro fell sharply last week as speculation grows that the European Central Bank is set to announce a hefty economic stimulus package. The currency hit a 10 year low against the US dollar and was at its lowest level against the pound since March 2008.
Hi-Pro soyameal (Ex-Store East Coast delivery) was £319/t (Friday 16 Jan), down £16 on the previous week. UK rapemeal (34%, Ex-mill Erith, December delivery) was £197/t, down £5 from last week. Concerns over the Chinese cancellation of US orders and the expectation of record production in Brazil have had a bearish effect on the market.
To read more about the latest developments in the feed market click here.