Feed market update - 27 May 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
After increasing towards the end of last week, grain prices have generally fallen compared with last week’s values. UK feed wheat futures (Nov-15) closed at £120.70/t on Tuesday, down £1.55 on the previous week. Concerns over the US wheat crop appear to have abated following Tuesday’s USDA crop progress and conditions report. For the week ending 24 May, 81% of US winter wheat was described as being in ‘fair’ to ‘excellent’ condition, compared with 56% at same time last year. Similarly, 96% of spring wheat was rated to be in ‘fair’ to ‘excellent’ condition, above the previous five year average of 79%.
The latest update of Defra’s UK cereal supply and demand forecasts for 2014/15 was released on 21 May. Wheat consumption in animal feed was estimated at 6.68Mt, 8% higher year on year, while barley usage in feed was projected to decline by 4% compared with 2013/14. Maize usage was estimated at 1.10Mt, slightly higher than the previous forecast made in March but 13% lower year on year.
As at Tuesday’s close (26 May), Chicago soyabeans futures (Nov-15) were $332.41/t, a contract low and $11.29 lower than last week’s price but Paris rapeseed (Nov-15) futures have continued their upward momentum. UK rapemeal prices (34%, ex-mill Erith, spot delivery) were £204/t on Friday (22 May), up £14 on the previous week. The Brazilian soyameal price (48%, ex-store Liverpool, spot delivery) was £307/t on Friday (22 May), up £3 week on week. Strong planting progress in the US and the strengthening US dollar were behind the falls in soyabean prices. Both Paris rapeseed and Canadian canola futures withstood the pressure from the soyabean market as forecasts indicated lower rapeseed production in 2015/16.
To read more about the latest developments in the feed market click here.