Feed market update - 13 January 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday (12 Jan) May-16 UK feed wheat futures prices closed down slightly (25p) on the week at £115.15/t. In contrast, Chicago wheat and maize futures prices were up on the week. The increase in US prices comes as the USDA released various reports (on 12 Jan). The latest supply and demand report recorded a decline in world maize ending stocks forecasts compared to last month, while the US winter plantings release revealed a decline in winter wheat area. According to the latest trade data from HMRC, the UK is still a net importer of wheat, albeit by a small amount, so far this season. Additionally UK maize imports were at the highest level since March 2014 in November.
Chicago soyabean futures prices (May-16) settled up on the week yesterday (12 Jan) at $322.30/t, an increase of $5.69. In contrast, May-16 Paris rapeseed futures prices closed down on the week. Similar to cereals, the raft of releases published on 12 Jan by the USDA supported US soyabean prices. The releases revealed a downward revision to US soyabean harvest area so having a knock on effect on total global soyabean production. Preliminary trade data from Chinese customs revealed that December soyabean imports took 2015 purchases of the commodity to an all-time high of 81.69Mt, up 14% on 2014. The latest data release may help to partly ease concerns about Chinese demand in global agricultural markets. January UK rapemeal (34%, ex-mill, Erith) was at £151/t while Brazilian soyameal (48% ex-store, Liverpool) was at £260/t on Friday (8 Jan). Hi-pro (ex-store, East Coast) soyameal was at £244/t for May delivery on Friday. Price comparisons with the previous week are not available.
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