Feed market update - 25 March 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
March so far has been a bullish month for UK grain prices and last week was no exception. New crop (Nov-15) futures in London closed at £132.25/t on Tuesday – up £2.60 on the week and a £6.25/t rise over the month so far. Although Paris maize futures have been flat in euro terms, in sterling terms the Nov-15 contract rose around £3/t on the week to Tuesday with the euro gaining some strength. Despite heavy supplies of the old crop, it is the new crop (harvest 2015) which is driving markets for the time being. Further volatility may be around the corner, with quarterly US stocks and prospective planting data out from the USDA next Tuesday.
Oilmeal prices were unchanged or higher in the UK last week. UK rapemeal (34%, ex-mill Erith, March delivery) £186/t as at 20 March, was up £5 on the previous week, while Brazilian soyameal (48%, ex-store Liverpool, March delivery) was unchanged at £349/t. The reversal of recent currency trends in the week, with sterling weakening against the euro but strengthening against the US dollar, drove the direction of UK prices against a relative lack of supportive news in the oilseeds complex. With a seasonal price dip often seen following the confirmation of the South American soyabean harvest, the current relative stability in prices shouldn’t be taken from granted.
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