Feed market update - 7 January 2015
Over the festive period, UK May-15 feed wheat futures peaked at £140.75/t on 24 December, although they fell back to close at £136 on 2 January.
Over the festive period, UK May-15 feed wheat futures peaked at £140.75/t on 24 December, although they fell back to close at £136 on 2 January. Since then, prices have climbed again, reaching £139.20/t as at Tuesday’s close. Concern over winter kill in the US winter wheat crop has added some bullish sentiment to the market recently but it is too early to draw any conclusions on what this could mean for production. The market now appears to be getting more clarification on the Russian export situation. From 1 February, a 15% export duty plus €7.50/t will be introduced on wheat, adding to the competitiveness of EU wheat on the global market.
UK rapemeal prices (34%, Ex-mill Erith, January delivery) were £191/t on Friday (2 Jan), up £3 from the last reported price on 19 December. May-15 Paris rapeseed futures settled at €355.25/t on Tuesday (6 Jan), up €5.50 week on week, with Chicago futures also higher. Concerns over the impact of dry weather in Argentina on soyabean yields have provided some bullishness to the oilseeds market in recent days. Technical trading and reports of further export sales of US soyabeans to China have also provided support to prices.
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