Feed market update - 6 Janaury 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
On Tuesday, May-16 UK feed wheat futures prices settled down £2.70 on the week, at £115.40/t. Chicago wheat and maize futures prices (May-16) also closed lower. Trading on Chinese stock markets was suspended on Monday following a sharp drop in shares of 7% earlier in the day. The events are reported to be in response to China’s latest ‘factory activity’ release, which recorded a contraction in manufacturing activity in December for the tenth consecutive month. Agricultural markets reacted to the volatility in China, with May-16 Chicago wheat and maize futures prices settling at new contract lows on Monday. Widespread floods over the last month across the US Midwest has meant farmers have been desperately trying to find shelter for their crops. Nevertheless, the USDA yesterday released its latest crop progress and conditions report for selected states, which reported better condition ratings for most states than last season.
Chicago soyabean futures prices (May-16) closed at $316.61/t yesterday, $3.58 down week on week. On Tuesday, May-16 Paris rapeseed futures prices recorded no change week on week, settling at €373/t. Over the last week weather conditions have improved across parts of Brazil. While dryness remains widespread throughout stretches of northern and north-western Brazil, rains over the last week have helped to improve soil moisture. This has led to pressure for US soyabean prices. However, additional rains are still needed to curb dryness in key growing regions, such as parts of Mato Grosso. The latest weekly export data published by the USDA on Thursday (31 Dec) revealed the lowest weekly sales since the start of the marketing period in September for week ending 24 December.
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