Feed market update - 16 March 2016
Read our latest summary of developments on global markets for cereals and oilseeds
Feed market update
UK feed wheat futures (May-16) closed yesterday (15 March) at £103.60/t which is a small decrease of £0.40/t from Tuesday to Tuesday. May-16 Chicago wheat futures closed at $175.34/t, an increase of $4.41/t on the week with Chicago maize recording a smaller increase of $3.15/t, closing at $145.08/t. The increase in International grain futures markets was partly due to a combination of factors in the US especially a weaker dollar, less than ideal weather and stronger maize export sales.
USDA have reduced the global ending stocks for wheat, maize and soyabeans in their latest WASDE report (9 March) but they are still expected to be at record levels, signifying little change to global market fundamentals.
UK wheat exports in January totalled 310Kt according to HMRC’s latest trade data, recording the highest monthly level since December 2011 which brings season to date (Jul-Jun) wheat exports up 21% to 1.3Mt. Exports have been helped by the weakening of sterling against the euro since the start of the year.
As at Friday (11 Mar), UK rapemeal (34%, ex-mill Erith) for March delivery was £149/t, up £6/t from the previous week. Brazilian soyameal (48% ex-store Liverpool) for March delivery recorded a weekly decrease of £1/t, to £262/t, on Friday. Global soyabean stocks were trimmed to a still record 79Mt (80Mt in January), because of higher estimates for crushing in Brazil, as well as more exports from Argentina.
To read more about the latest developments in the feed market click here.
Lydia Hamer, Trainee Analyst
Lydia.email@example.com, 024 7647 8804