Feed market update
UK feed wheat had a bullish week with futures prices bouncing back above the £120/t mark.
May-15 contracts were £121.25/t at close on Tuesday (17 March), up £3.30/t since the previous Tuesday’s close. Chicago maize May-15 contracts fell sharply, closing at $146.06/t on Tuesday down $6.70/t week on week. Closer to home, June-15 Paris maize futures prices have been on the up, at €164.75/t on Tuesday, a gain of €2.75/t over the week. French maize prices remain higher even when converted to dollars which could provide support for EU and UK wheat which has had increased competition from maize in feed demand recently.
In the UK there has been an unusual price carry from the old crop to the new this marketing season. Essentially this is a function of heavy EU feed grain supplies and poor export pace from the UK. With insufficient demand, the old crop market has to discount to the new crop and so recently the new crop premium over the old crop has been increasing. In addition, feed grain production in Europe is likely to be lower in 2015, supporting new crop prices relative to the spot market.
UK rapemeal (34%, ex-mill Erith) was £181/t as at 13 March, up £2/t on the previous week. Brazilian soyameal, (48%), ex-store Liverpool was £349/t as at 13 March, up £3/t on the previous week’s price. May-15 Chicago soyabeans have fallen to their lowest since October closing at $361.71 on 17 March, down $11.03/t since the previous Tuesday’s close. The looming South American soyabean harvests continue to be the main focus of the market’s attention but the situation is far from confirmed yet and some forecasts are being revised downwards.
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