Feed market update - 3 February 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday, UK wheat futures prices (May-16) closed down on the week at £108.40/t a decrease of £4.45. Chicago and Paris wheat futures prices also declined from Tuesday to Tuesday but Chicago maize futures closed up on the week. Speculation over potential changes to Russia’s grain export policies has continued to partially support international wheat futures. As the rouble has fallen against the US dollar, Russian grain prices have risen, putting additional pressure on pig and poultry producers. As a result, changes to the export system are being considered with a decision expected to be made on Wednesday (3 Feb). The latest crop conditions report from the USDA indicated that 55% of winter wheat grown in Kansas, the largest growing region in the US, is in good or excellent condition, up from 54% the previous month and 46% this time last year.
Both May-16 Chicago soybean and Paris rapeseed futures prices closed up on the week on Tuesday. As at Friday, UK rapemeal (34%, ex-mill Erith) for February delivery was £144/t, a decrease of £4 on the week. Brazilian soyameal (48% ex-store Liverpool) for March delivery also recorded a weekly fall, of £3 to £259/t on Friday. Crude oil continues to be a key driver in the oilseed market. Brent crude oil future prices (May-16) recorded an increase towards the end of last week, after speculation of a reduction of supply from Russia. Changing weather across South America has brought mixed conditions for soyabean crops, with beneficial rain across central and southern Brazil expected to continue. Meanwhile, in Argentina concerns are beginning to arise due to the continued wet weather starting to effect crop conditions in some areas, with dryness an issue in others.
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