Feed Market Update - 14 October 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Nov-15 UK feed wheat futures prices closed at £117/t on Tuesday, up 20p from the previous Tuesday. Chicago wheat and maize futures were lower on the week, however. Global wheat supplies were increased in the October Supply and Demand Estimates from the USDA last Friday but maize production was cut for several of the major exporters, including the US and Ukraine. However, total grain supplies remain high and the US futures markets closed lower. Defra’s provisional estimate for UK 2015 wheat production is 16.1Mt, while barley output could be the highest since 1997 at 7.3Mt. In AHDB Cereal & Oilseeds’ Early Balance Sheet, animal feed demand for cereals is forecast to be higher compared with last year. The proportion of wheat used in feed rations is forecast to increase throughout this season, due to its current price competitiveness compared with other feed grains.
Nov-15 Chicago soyabean prices closed at $335.80/t on Tuesday, up $9.55 week on week. Paris rapeseed futures prices also closed higher. On Friday, Brazilian soyameal (48%, ex-Store, Liverpool, October delivery) was £277/t, down £5 week on week. In its latest supply and demand estimates, the USDA revised US soyabean production 1.3Mt lower than the September forecast, to 105.8Mt. The revision was at the low end of trade expectations, which created some support for oilseeds markets. Brazilian soyabean production in 2015/16 is forecast to reach a record 100Mt by the USDA. The increase comes as local prices have been insulated from global declines by the weaker real, which is expected to encourage farmers to plant a larger area this season.
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