Feed market update - 27 April 2016
Read our latest summary of developments on global markets for cereals and oilseeds
Both European and US grain markets rose last week as weather concerns in South America once again dominated headlines. Furthermore, fund activity helped to support prices during the first half of the week, before slowing on Thursday. UK feed wheat futures (May-16) closed down on the week Tuesday-Tuesday by £1.05, settling at £104.65/t on Tuesday. May-16 Chicago wheat and maize futures also closed down. On Tuesday 19 April, the Brazilian government announced plans to scrap its import tax on maize shipments due to concerns over tighter supplies. On Thursday, Statistics Canada released the results of its intended plantings survey. From a grains perspective, the areas intended to be planted to wheat and oats were forecast to fall while the areas planted to barley and grain maize are expected to increase.
Chicago soyabean futures prices (May-16), closed at $373.96/t, an increase of $11.85 Tuesday-Tuesday. However, Paris rapeseed futures prices (May-16) closed at €372.00/t on Tuesday, a total decrease of €4.25 week on week. Hi-pro soyameal for May delivery into the east coast was at £294/t on Friday. Oilseeds markets are still very much focussed on the potential impact of South American soyabean supplies, due to weather concerns. In Argentina, heavy rainfall in north-eastern regions has continued, which has stalled harvesting. Results from Statistics Canada’s March Farm Survey were also bullish for the oilseeds complex, with intended plantings of canola (rapeseed) pegged 4% below last year.
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Millie Askew, Analyst
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