Feed market update - 2 September 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
Tuesday’s Nov-15 UK feed wheat futures closing price was £114/t, a level which the contract trended around for most of the past week. On Friday, the contract reached a new low of £113.65/t, reflecting harvest pressure and the bearish sentiments in the grain markets at the moment. The International Grains Council (IGC) added further weight to grain markets as they forecasted global grain production to reach a record of 1,988Mt, up 18Mt on their previous forecast. UK wheat stocks climbed 71% in June, to the highest tonnage since 2009. With a substantial level of stocks in place at the end of 2014/15 and another big wheat harvest expected, 2015/16 is likely to be another year of large supplies.
Market anxiety over the impact of the Chinese economic slowdown on global oilseed demand has moved in and out of focus throughout the last week. Concerns eased towards the end of last week following Chinese government measures to boost demand. However, indications that demand from manufacturers contracted in August have capped gains for oilseed prices. The IGC increased estimates for the 2015/16 Brazilian soyabean area to 33Mha, up 3% year-on-year and a new record. UK soyameal prices (Brazilian, 48%, ex-store Liverpool, spot delivery) increased by £5 to £288/t on Friday, compared with a week earlier. Rapemeal (34%, ex-mill, Erith, September delivery) prices were unchanged on the week, at £172/t on Friday.
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