Feed market update - 10 February 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
The release of the latest USDA world supply and demand report brought a bearish sentiment to grain markets. UK feed wheat futures prices (May-16) closed down on the week by £2.90 at £105.50/t on Tuesday. Similarly, May-16 Chicago wheat and maize prices (May-16) also recorded a decline Tuesday-Tuesday. Global wheat stocks were revised up once again by the USDA in its latest world supply and demand report, due to a reduction in demand forecasts in China and India. Global production of wheat also increased, albeit by less, due to increases from Argentina and Ukraine outweighing reductions from Kazakhstan. The USDA forecast global maize stocks to remain broadly unchanged from January’s report, despite an upward revision to production.
May-16 Chicago soyabean and Paris rapeseed futures prices closed down on the week on Tuesday. Currency continues to exert influence on UK rapeseed futures prices. On Friday, UK delivered rapeseed prices (34%, ex-mill Erith) were reported broadly unchanged from 29 January at £145/t for March delivery, despite falls in international futures prices on the week. These falls were partly offset by a renewed weakening in sterling against the euro. The latest forecasts from the USDA also recorded upward revisions to global soyabean supply and demand driven by a higher production forecast for Argentina.
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