Feed Market Update - 7 October 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
International wheat prices continued to gain over the past week, as early new crop concerns persist. UK feed wheat futures prices followed suit, though to a lesser extent, with the Nov-15 contract gaining £1.30 in the week to Tuesday, when they closed at £116.80/t. Prices are now back to levels not seen since mid-August. Dry weather continues to affect planting in Russia and Ukraine and concerns have also been mooted about slower winter wheat planting in parts of the US. The Russian government approved proposals to reduce the export tax on wheat from 1 October to support Russian wheat exports, which have got off to a slower start than the last couple of seasons. An estimated 27% of the US maize crop had been cut by 4 October, slightly behind the average at this point in the year. Nonetheless, the progression of harvesting means markets will soon have more clarity on US maize yields and the production number in this Friday’s monthly USDA report is likely to be closely watched.
Chicago soyabean futures had a variable week before closing slightly higher. In contrast, Paris rapeseed futures gained steadily. For soyabeans, a key driver has been the rapid progress of the US harvest, which is bringing fresh supplies to the market and keeping a lid on prices. In contrast, new crop concerns continue to support rapeseed futures. Prices for oilmeals in the UK also showed different trends. UK rapemeal prices (34%, ex-mill, Erith) fell for the seventh week running; prices for October were reported at £157/t on Friday, down by £4 on the week. Hi-pro soyameal prices (ex-store, East Coast) showed a smaller decline, down £1 week-on-week to £264/t. In contrast, Brazilian soyameal (48% ex-store, Liverpool), was reported £1 higher than the previous Friday at £282/t.
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