FEED MARKET UPDATE - 20 JANUARY 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday (19 Jan), UK feed wheat futures prices (May-16) closed down on the week at £114.10/t, a decrease £1.05/t. May-16 Paris and Chicago wheat futures prices also recorded a decline Tuesday to Tuesday while Chicago maize futures prices (May-16) settled up on the week. The increase in wheat prices at the beginning of last week due to the raft of USDA data released on Tuesday (12 Jan), was short lived as the realisation of ample global stocks settled back in. Despite the week on week decrease in futures prices, the UK market was shielded somewhat as Sterling weakened against both the euro and US dollar last week. Additionally the weakening of the pound has provided a welcome boost to UK export competitiveness. While there has been a rather bearish sentiment surrounding wheat prices last week, maize prices have recorded a weekly increase partly given concerns about the impact of severe drought in South Africa.
May-16 Chicago soyabean futures prices settled up ($3.31/t) on the week to 19 January at $324.6/t. Nevertheless, Paris rapeseed futures prices (May-16) closed down Tuesday-Tuesday at €361.75/t, a fall of €4.50/t. Oilseed markets were impacted by differing influences last week, with price increases for soyabeans but falls for rapeseed and palm oil futures. An unexpected cut to the global end 2015/16 soyabean stock forecast by the USDA, added support to both soyabean and soyameal futures prices, with short covering by the funds potentially also a factor. In contrast, the weakness in crude oil values also weighed on rapeseed futures prices, due to its higher oil content. December UK rapemeal (34%, ex-mill, Erith) for January delivery was reported at £152/t on Friday (15 January), an increase of £1/t. Brazilian soyameal (48% ex-store, Liverpool) recorded a larger rise on the week on Friday of £6/t to £266/t.
To read more about the latest developments in the feed market click here.