Feed market update - 11 November 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
It was another fairly quiet week for UK feed wheat futures. The Nov-15 contract closed at £113.30/t on Tuesday (10 November), down just £0.10/t compared to a week earlier however a larger fall was recorded by the US futures market (Chicago Dec-15). Last week, the EU Commission raised estimates for EU-28 wheat production and also stocks as EU granting of export licences continue to lag behind recent years. At a global level, the USDA made few changes to supply and demand balances for wheat in its November report compared with October’s estimates. In line with expectations, global ending stocks were revised down slightly (by 1.2Mt). In contrast, forecasts of the global maize supply and demand balance from USDA showed more changes compared with those of a month ago. For the UK despite another big domestic wheat crop in 2015 and obvious surplus, it has continued as a net-importer of wheat in the first quarter of 2015/16 (July to September), although to a lesser extent than a year earlier.
Oilseed futures prices in both Paris and Chicago closed lower than a week ago. Chicago soyabean futures (Jan-16) closed down $8.64/t on Tuesday to $314.31/t, while Paris rapeseed futures (Feb-16) fell €6.75/t to €374.75/t. UK rapemeal (34%, ex-mill, Erith) for December was reported at £158/t on Friday (6 Nov), down by £5/t week on week. Soyameal prices for November also decreased Friday to Friday with both Brazilian soyameal (48% ex-store, Liverpool) and Hi-pro (ex-store, East Coast) down £3/t to £268/t and £255/t respectively. In the latest USDA report (released 10 November), US soyabean production was uplifted by 2.5Mt in November. September GB animal feed statistics from Defra show that the usage of oilseed rape cake and meal in the production of compound and other processed animal feedstuffs was down year on year while the usage of soya cake and meal increased.
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