FEED MARKET UPDATE - 18 NOVEMBER 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday (17 Nov) UK feed wheat futures (Nov-15) closed down on the week by £1.70/t at £111.60/t. Dec-15 Chicago wheat futures also decreased on the week. However, despite an upward revision of world maize stocks by the USDA last week, Chicago maize futures (Dec-15) closed up on the week yesterday (17 Nov). On Tuesday (17 Nov) the AHDB Early Bird Planting survey results from the Andersons Centre/AICC were released, giving a preview of intentions for 2016 harvest. The survey suggested a static total wheat area compared to last season with spring barley, pulses and oats expected to rise in area compared with 2015, whereas the winter barley area is projected to decline. According to the latest estimates from France AgriMer, published last week (12 November), 2015/16 French soft wheat closing stocks could be more than double last year’s figure and the highest since 1999/00. Last week it was announced that UK barley can now be exported to China, thanks to an extraordinary industry effort spearheaded by AHDB.
Both Chicago and Paris oilseed futures closed up on the week at yesterday’s close (17 Nov). UK rapemeal (34%, ex-mill, Erith) was reported at £150/t on Friday (13 Nov), the lowest price recorded since December 2011. Brazilian soyameal (48% ex-store, Liverpool) was down £2/t to £266/t, with Hi-pro (ex-store, East Coast) prices also down by £2/t to £253/t on Friday (13 Nov). The Early Bird Survey released yesterday revealed that the oilseed rape area is showing a sizable decline of 14% for 2015/16 harvest. Over the past month Paris rapeseed futures (May-16) have stayed within a range of €373-380/t. However, due to the weakening of the euro prices in sterling terms have moved lower. Although the price reduction for rapeseed may be less due to tighter global supply compared to soyabeans, if the euro continues to weaken against the pound, UK rapeseed prices may not be as shielded from the high global soyabean supplies.
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