Feed market update - 6 April 2016
Read our latest summary of developments on global markets for cereals and oilseeds
UK feed wheat futures prices (May-16) closed marginally up (£0.45/t) on the week on Tuesday, at £106.45/t. Nevertheless, Paris wheat futures prices (May-16) recorded a decline week on week. The diverging trends recorded in European markets over the last week have been partly influenced by currency movements. Sterling has slipped to a near 18 month low against the euro, which has helped to protect UK prices somewhat, while the euro has strengthened against the US dollar. Chicago wheat futures prices recorded a slight decline Tuesday to Tuesday while Chicago maize recorded a larger decline, partially due to the results of the USDA’s reports on stocks and prospective plantings, released last week. New crop developments dominated headlines last week and again this week. Alongside the USDA reports released last week, on Tuesday the USDA released its first crop conditions report of 2016. The report recorded 59% of winter wheat as in good or excellent condition.
Similar to grains, the oilseed complex was influenced last week by the anticipation and then the release of the USDA stocks and prospective plantings reports. Despite Chicago soyabean futures closing up on Friday in response the USDA reports, the May-16 contract closed down week on week on Tuesday. Nevertheless, May-16 Paris rapeseed futures settled slightly up. As at Friday 1 April, UK rapemeal price (34%, ex-mill, Erith) for May delivery was £150/t, a decrease of £9 from the previous week. Brazilian soyameal (48%, ex-store, Liverpool) for May delivery was at £254/t on Friday.European rapeseed crops were reported to be in good condition as of 24 March, according to Strategie Grains' latest oilseeds report. Rapeseed yields and production could be looking promising but weather conditions during the flowering stage are crucial to determine full potential.
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Millie Askew, Analyst
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