Feed market update - 30 September 2015
Read our latest summary of developments on global markets for cereals and oilseeds.
UK Nov-15 wheat futures closed at £115.50/t on Tuesday, £4.10 up week on week. Chicago wheat and maize futures also followed the upward trend. UK feed wheat futures (Nov-15) recorded the largest one day gain since early July last Wednesday, with similar increases to the Chicago and Paris milling wheat futures. The increase in prices stemmed from worries over winter planting in the Black Sea region, where dry weather is causing concern. On Monday, the final UK balance sheet for the 2014/15 season was published. Wheat used for animal feed was up 11%, while barley usage reduced by 5% compared to 2013/14 season. The usage of maize and oats for animal feed also decreased. End of season closing stocks for all cereals increased by 28% compared to 2013/14.
Chicago soyabean futures prices (Nov-15) closed on Tuesday at $153.15/t, $3.35 up on the week. Paris rapeseed futures prices also increased on the week. However, UK rapemeal (34%, ex-mill, Erith) prices fell for the sixth week running on Friday, down by £1 on the week to £159/t. It was a similar story for Brazilian soyameal (48% ex-store, Liverpool), falling by £2 to £281/t but Hi-pro soyameal (ex-store, East Coast) increased by £1 to £265/t. Weekly US soyabean harvest progress figures came in above analysts’ expectations on Monday, with 21% of soyabean area harvested against an average expectation of 18%. Rapeseed sowings for 2016 in the EU, the biggest grower of this commodity, are unlikely to beat last year’s levels, according to the IGC. Further, the dryness in Ukraine has not just affected the sowing of grains but of rapeseed too.
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