Feed market update - 13 May 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Nov-15 UK feed wheat contract prices have firmed over the week, closing at £119.25/t on Tuesday, up £1.75 week on week. New crop Chicago wheat futures were also up on the previous week but maize futures were lower. On Tuesday, the USDA released its first estimates of global supply and demand for the 2015/16 season. Global wheat production in 2015/16 is forecast to fall by 7.5Mt compared with 2014/15, which points to a thin surplus but, with stocks high, a considerable deficit would be needed to cause concern for the market. For maize, global production in 2015/16 is projected to decline by 6.3Mt year-on-year. Combined with an anticipated 1.3% growth in demand, a slight deficit is predicted. Unlike wheat, maize doesn't have a huge room for manoeuvre with its stocks-to-use ratio without lending support to prices and, just after the report, Chicago maize prices rallied slightly.
UK rapemeal prices (34%, ex-mill Erith, spot delivery) were £193/t on Friday (8 May) up £10 week on week. Soyameal (Brazilian, 48%, ex-store Liverpool, spot delivery) prices were £316/t on Friday, down £1 on the week. There was more bearish news for soyabeans in the USDA’s supply and demand estimates for 2015/16. Unlike for grains, a significant surplus was projected, with the global stocks-to-use ratio expected to rise to above 31% despite a considerable expected increase in demand. There was little surprise from South America as crop estimates for the current season came in very close to the Reuters poll average for both Argentina and Brazil.
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