Feed market update - 6 May 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK Nov-15 feed wheat futures continue to fall, with the price closing at a contract low of £117.5/t on Tuesday, following poor export data coming out of the US indicating ending stocks will be higher than previously expected. For the UK crop outlook, ADAS suggest that grain crops were in good condition at the end of April, especially as recent rain has lessened fears of below average rainfall. For the new maize crop, US farmers planted a massive 36% of the intended maize area in the week to 3 May.
Stocks of wheat in UK futures stores have reached their highest level for this time of year since 2011. The weakening euro contrasting with a strengthening pound has been one of the stories of the season so far, however in recent days the euro has begun to strengthen which might help support UK prices, which are currently suffering from the current downward movement in global prices. However, it could harm the EU’s competitiveness on the global market and increase competition within the trading block.
UK rapemeal prices (34%, ex-mill Erith, spot delivery) were £183/t on Friday (1 May) down £5/t week on week, while soyameal (Brazilian, 48%, ex-store Liverpool, spot delivery) had gained £1/t at £317/t. The forecast for the Argentine soyabean crop has been revised up to a record level, with 62% of the planted area already harvested. In the US 13% of the soyabean area had been planted by 3 May, making progress from only 2% planted last week and 4 percentage points ahead of the five year average.
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