Feed market update - 15 July 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
At Tuesday’s close (14 July) Nov-15 UK feed wheat futures stood at £126.25/t, down £6.50 from the previous Tuesday. Chicago wheat futures also followed the downward trend but maize futures were up on the week. The latest USDA supply and demand estimates, released on Friday, uncovered a mixed picture for grain markets. In line with expectations, the global maize balance was tighter than previous forecasts but there were substantial changes to global wheat opening stocks because of large reductions to estimates of animal feed demand in China. Markets are keeping a close eye on weather impacts on both crop quality and harvest progress. Some concerns emanated from the Black Sea region last week, with the possibility of grain forecasts being cut if hot weather continues into mid-July.
On Friday, UK rapeseed (delivered Nov-15, Erith) was £280/t down 50p week on week, while Brazilian soyameal (48%, ex-Store, Liverpool) was £306/t, up £4 in comparison to the previous week. 2014/15 global soyabean stocks were forecast lower than previously by USDA, primarily due to higher demand in the US. Nonetheless, the numbers still show large stock accumulation, keeping the big picture for oilseed supplies bearish. US soyabean export sales for the 2015/16 marketing year (which begins in September) are lagging behind recent years. The impact of the weather on rapeseed/canola crops in key producers, the EU and Canada, continues to be monitored, with some improvement in Canada but dry conditions remaining in Europe.
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