Feed market update - 28 January 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
May-15 UK feed wheat futures fell to a 6 week low as the contract closed at £127.05/t on Tuesday, down £3.45 on last week. This movement echoedChicago wheat futures (May-15) which closed at $192.15/t, down $5.69 and the lowest level since the start of November. May-15 Chicago maize futures, which have been mainly bearish since the New Year, closed at $150.10/t on Tuesday, a drop of $3.54 on the week before. These price drops follow a lack of bullish news and may also, in part, reflect the recent strength of the dollar. Although the strength of the pound against the euro is bearish for the UK market, it is also bullish for values in the Eurozone so may not result in lower UK prices. The important issue is that sterling is weak against the US dollar, helping non-EU exports compete.
UK rapemeal (34%, Ex-mill Erith, December delivery) was £190/t on 23 Jan, following a drop of £7 on the week before. While Paris May-15 rapeseed futures had fallen €2.50/t over the week to 27 January, in sterling terms the price had fallen by £7.71/t due to currency movements. May-15 Chicago soyabean meal futures were $298.28/t on 27 Jan, supported by strong US export sales, up $7.17 compared to 20 Jan. However, the global outlook for soyabeans is bearish according to IGC, with production estimates for 2014/15 having been revised upwards.
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