Feed market update - 3 June 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
The turn of the month has brought an upturn to UK feed wheat futures, with the Nov-15 contract rebounding from £119.45/t, as at Friday’s (29 May) close, to £124.75/t as at Tuesday’s (2 June) close. This is the highest closing price since late April. Paris maize futures have gathered less upward momentum, helping to make the grain relatively more competitive against feed wheat. Market attention is increasingly focused on weather events that could potentially impact on crops for the upcoming harvest. Heavy rains have recently affected the US Plains and possible flooding will remain an important watch area going forward. Closer to home, the latest ADAS Arable Crop Report indicated that domestic crops look to be in generally good condition.
As at Friday (29 May), Hi-Pro soyameal (ex-store east coast, spot delivery) was £291/t, up £10 week on week. UK rapemeal for August delivery (34%, ex-mill Erith) was £162/t, with no comparative price available for the previous week. Whilst prospects for oilseed crops in 2015/16 continue to look mainly favourable, there have been a few bullish news snippets over the past week. Globally, rapeseed and soyabean prices have been moving in opposite directions. Dry weather concerns and frosts in Canada have supported Canadian and European rapeseed futures. Analysts have predicted a 2% increase in Brazilian soyabean area in 2015/16. Despite lower soyabean prices, the incentive to grow the crop remains higher than alternatives such as maize and cotton, the prices of which are even lower.
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