Feed market update - 28 October 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK wheat futures (Nov-15) closed up £2.40 on the week at £114.90/t on Tuesday. Dec-15 Chicago wheat and maize futures prices also followed an upward trend. The latest EU crop monitoring (MARS) bulletin was released by the EU Commission on Monday. In the release, EU wheat, barley and maize yields for 2015 were all increased, compared with September’s estimates, due to weather improvements at the end of the EU harvesting season. Dry conditions in parts of Ukraine and Russia raised fears last week about this season’s maize crop and next year’s wheat prospects, giving the grain markets some support. In 2015/16 the Chinese government could reduce their maize purchases by around 50% in a bid to reduce state stock piles. A reduction in Chinese maize imports could put some pressure on global grain prices, dependent on global production this season. In the UK we could feel the pressure on feed wheat prices, due to the direct competition with maize on the feed grain market.
Nov-15 Chicago soyabean futures prices closed at $327.45/t on Tuesday (27 October), down $1.74 on the week. Paris rapeseed futures prices also decreased and UK rapemeal (34%, ex-mill, Erith) prices were £166/t as at Friday were down by £2 week on week. Brazilian soyameal (48% ex-store, Liverpool) also decreased on Friday by £7 to £273/t, the lowest price since December 2011. EU soyabean crushings were substantially higher in August and September 2015 than a year previously according to Oilworld. Soyabean crushings are reportedly benefiting from reduced supplies of rapeseed and sunflower seed in the EU this year.
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