Feed market update – June 2016
The price of maize has been a key focal point over the month to 23 June, with US maize futures (Dec-16) peaking at $176.66/t on 17 June, before falling back down to $156.59/t on 23 June.
The main catalyst behind the rise was a concern over South American production, combined with concerns over how drier than usual US weather could affect crop condition.
The upward movement to maize markets also pulled global wheat prices up with it, while UK prices received a further boost from a weakening of sterling against the euro to mid-June. The fall in prices later in the month followed the easing in US weather concerns, which were compounded in the UK by a partial recovery in sterling to 23 June.
South America has been a key talking point in the proteins market, as well as dominating the grains market, this month. Earlier in the month, prices were driven over concerns over both the quality and quantity of soyabean stocks, specifically in Argentina. Reports of restricted supplies, from one of the world’s largest growers of soyabeans, led to sharp price rises. Changes in the value of rapeseed over the month to 23 June were also recorded, with Paris rapeseed future prices (Nov-16) following a similar trend to other oilseeds.
To read more about developments in the markets affecting animal feed over the last month, click here.
Millie Askew, Analyst
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