Feed market update - 17 June 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Grain markets faced a bit of a reality check in the past week, helping futures to ease. A selection of weather events, not all of them new, provided mixed news. UK Nov-15 feed wheat futures closed at £122.25/t on Tuesday, down £7.25 on the week. The buoyant sentiment in markets up until last Wednesday was reversed with the release of the latest USDA World Supply and Demand estimates. The global wheat production forecast for 2015/16 was increased by 2.6Mt to 721.55Mt, with EU production raised by 0.4Mt. Increases to South American maize crop estimates for 2014/15 led to higher global end-stock estimates. The impact of weather fears on US winter wheat became a little clearer, with the first test results from harvest showing poor quality for the typically milling-grade Hard Red Winter crop. From a feed grain perspective, this would mean greater global supplies of feed grains should these results be repeated across the US harvest.
As of Friday, soyameal prices in the UK followed the downward trend in soyabean futures. Brazilian soyameal (48%, ex-store Liverpool, spot delivery) was £293/t, down £1 week-on-week. However, soyabean futures have risen once more since the beginning of this week. Nov-15 Paris rapeseed futures fell approximately £6 week-on-week to close around £269/t on Tuesday. With the deadlines for qualifying for crop insurance rapidly approaching (and in some states now passed), there is a risk that not all intended soyabean area will be planted in the US, with only 87% of the intended area sown by 14 June.
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