Feed market update - 13 April 2016
Read our latest summary of developments on global markets for cereals and oilseeds
Further weakening of sterling against a number of currencies last week helped UK wheat futures to somewhat resist greater falls recorded by international wheat markets. On Tuesday, UK feed wheat futures prices (May-16) closed down on the week at £104.35/t, a total decrease of £2.10. May-16 Chicago futures prices recorded a larger decline Tuesday-Tuesday, while May-16 Chicago maize futures prices closed up. In February total pig feed production was up 3% compared to the year before, according to Defra. This takes season to date (July-February) usage to 1.3Mt, 3% ahead of the same point last season. Barley inclusions in February increased by 13% compared to a year earlier, while wheat usage fell by 1% year on year. In its latest world supply and demand report the USDA increased its forecasts for global end of season stocks for both wheat and maize, as well as for soyabeans.
May-16 Chicago soyabean futures prices closed up on the week on Tuesday, while Paris rapeseed futures prices closed down on the previous Tuesday. On Friday, rapemeal (34%, ex-mill Erith) was £158/t for April delivery, an increase of £2 on the week. Similarly, soyameal (hi-pro, ex-store east coast) recorded an increase on the week of £4, at $250/t on Friday. In February rapemeal inclusions in animal feed decreased by 10% compared to a year earlier, while soyameal usage increased by 11%, in line with trends for the season so far. China’s Ministry of Agriculture has announced it plans to reduce the country’s maize area in some parts of the country by 3.3Mha by 2020. The aim is to boost soyabean sowings to try to meet domestic human demand.
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Millie Askew, Analyst
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