Feed market update - 25 November 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK feed wheat futures prices (May 16) have remained relatively stable, closing marginally down on the week at £118.05/t on Tuesday. However, May 16 Chicago wheat and maize futures prices both closed up on the previous week yesterday. Demand for cereals used in animal feed is forecast down by 2% for 2015/16 compared to the previous season according the latest Defra UK balance sheet published on Wednesday. While overall cereal demand is expected to decrease, usage of wheat in animal feed rations is forecast to increase during 2015/16, due to its current price competitiveness compared with other feed grains. The International Grains Council (IGC) cut its forecasts for world maize production for 2015/16 by 3Mt to 967Mt in its latest Market Report. The ICG also forecast a decline in global demand, with a reduction in consumption for animal feed the driver behind decline.
Nearby Chicago soyabean futures traded at their lowest level (in dollar terms) in over six years for a time on Monday, following the Argentine election result, with a daily low around $310/t. Although markets closed higher on Tuesday, they remain close to historic lows. Paris rapeseed futures also came under pressure but they remained above their level from early last week and around €10/t higher than in September.
UK rapeseed markets have been under pressure recently from the weak euro. UK rapemeal (34%, ex-mill, Erith) recorded no change on the week at £150/t, while Brazilian soyameal (48% ex-store, Liverpool) was down £10 to £256/t on Friday, compared to a week earlier. Hi-pro (ex-store, East Coast) prices recorded a similar decline of £9 to £244/t. The International Grains Council (IGC) increased its forecasts for global soyabean production by a further 2Mt in its latest market report, as well as increasing its global trade and consumption forecasts for 2015/16.
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