Feed market update - 23 March 2016
Read our latest summary of developments on global markets for cereals and oilseeds
UK feed wheat futures prices (May-16) closed up £1 on the week on Tuesday at £104.60/t, with prices supported by the weakening of the sterling. Nevertheless, May-16 Chicago wheat futures prices closed down Tuesday to Tuesday while Chicago maize futures prices (May-16) recorded a slight increase. The gap between ex-farm feed wheat and ex-farm feed barley has narrowed to £3.50/t. The smaller premium could mean that wheat is more attractive to use as a feed ingredient than barley. On a domestic level, cereal crops look to have come through the winter in relatively good condition, according to the latest Spring Arable Crop Report from ADAS.
May-16 Chicago soyabean and Paris rapeseed futures prices closed up on the week yesterday. As at Friday 18 March, UK rapemeal (34%, ex-mill Erith) for April delivery was at £158/t, a total increase of £11 Friday to Friday. In contrast hi-pro soyameal (ex-store, East Coast) was at £246/t for March delivery, a decrease of £5 on the week. UK winter oilseed rape is ahead of the usual crop development pace according to the latest ADAS Report. Around 75% of crops were at early flower bud development by the end of February, well ahead of normal. US soyabean crushing pace slowed in February, according to National Oilseed Processors Association, but the monthly crush was greater than analysts had been expecting in a Reuters' Poll.
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Millie Askew, Analyst
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