Feed market update - 2 March 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
UK feed wheat futures (May-16) closed down £3.65/t on the week yesterday (1 Mar) at £101.85/t. Similarly, May-16 Chicago wheat futures closed at $163.86/t, a decrease of $3.58/t Tuesday to Tuesday. In contrast Chicago maize futures (May-16) also declined on the week, by $4.33/t closing at £140.06/t.
Data released from the USDA’s Outlook Forum on Friday (26 Feb) indicated that US grain markets are likely to remain heavily supplied in 2016/17. Revealing it’s first projections, the USDA forecast both US maize and wheat end season stocks at multi-year highs.
UK exports have become more competitive in recent weeks given the fall in sterling but they still need to bid against more than ample global supplies. The surplus of wheat available for either export or for free stock is up 38% on last year according to the latest Defra supply and demand estimates for 2015/16 published last Wednesday (24 Feb) So exports are going to be key in avoiding an even larger carry over into 2016/17. In contrast a decrease in demand for animal feed manufacture and human and industrial usage is expected.
May-16 Chicago soyabean futures prices closed yesterday at $315.23/t, recording a week on week decrease of $5.51/t. As at Friday (5 Feb), UK rapemeal (34%, ex-mill Erith) for March delivery was £138/t, unchanged from the previous week. Brazilian soyameal (48% ex-store Liverpool) for March delivery recorded a weekly increase of £2/t, to £262/t on Friday. Global soyabean production in 2015/16 is expected to match last year’s bumper harvest of 321Mt, according to the latest report published by the International Grains Council with consumption also increasing.
To read more about the latest developments in the feed market click here.
Lydia Hamer, Trainee Analyst
Lydia.email@example.com, 024 7647 8804