Feed market update - 8 July 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Feed market update
It’s been a volatile week for UK feed wheat futures, although Tuesday’s close, with the Nov-15 contract up only £0.75 on the week at £132.75/t, disguises much of this. The level of £135/t last Thursday was the highest daily close since January 2015. The results of the AHDB planting survey confirmed the anticipated trends for grains, with a wheat area 3% lower than last season coupled with a 3% increase in barley area. Yields remain sensitive to the weather but this does not preclude relatively good wheat production being achieved. Beyond GB, international factors continued to be the driving force of the rally through last week, as hot, dry weather persisted across parts of Europe and Canada. Moving into this week, the uncertainty over Greece’s place in the Eurozone and the subsequent effect on the euro has been hanging over the market.
Soyameal prices (Brazilian, ex-store Liverpool, spot delivery) strengthened £10/t on the week to Friday 3 July, with lower gains for rapemeal. These followed rallies in soyabean and rapeseed futures last week but it is probable that UK protein meal prices will have followed the falls in oilseed futures over the past couple of days. The dry conditions in Europe and Canada are also continuing to affect rapeseed crops. The latest USDA crop progress report showed US soyabean plantings still incomplete as of 5 July and as the optimal planting window has now passed for most areas, this could lead to a lower area being planted than had been intended. US soyabean crop condition scores, however, did not decline, suggesting the weather that has been hampering planting has not hit crop conditions.
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