Feed market update - 27 January 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday, May-16 UK feed wheat futures closed down on the week at £112.85/t, a decrease of £1.25. In contrast, week on week increases were recorded for Chicago wheat and maize futures. Currency continues to play an important role in the futures market, with sterling at £1=€1.314 at the end of Tuesday, after dipping below the €1.30 threshold at the end of last week. UK feed wheat futures prices recorded a week on week decrease as the currency regained strength. The latest monthly report from the International Grains Council (IGC) recorded contrasting estimates for grain output in 2015/16. While global grain production is forecast down on last year, so too is consumption and together this pushed forecast ending stocks to a 29-year high of 455Mt.
Oilseed futures prices fell sharply last Wednesday, before rebounding to differing degrees over the following days. May-16 Chicago soyabean futures price closed down on the week while Paris rapeseed futures ended the week higher, due to the weaker euro. One of the drivers of the fall was Brazilian soyabean output forecasts, which are still reaching new records, despite less than ideal weather conditions. Global soyabean production for 2015/16 is forecast to increase by 0.2% (1Mt) on the year to 322Mt, according to the IGC report. UK rapemeal (34%, ex-mill, Erith) for February delivery was reported at £148/t on Friday, a decrease of £5 Friday-Friday. In contrast, Brazilian soyameal (48% ex-store, Liverpool) for February recorded a rise on the week of £4 to £262/t.
To read more about the latest developments in the feed market click here.