Feed market update - 30 March 2016
Read our latest summary of developments on global markets for cereals and oilseeds
UK feed wheat futures (May-16) rose by £1.40 on the week to close at £106/t on Tuesday. Chicago wheat and maize futures also increased. Weather concerns in the US, short covering of funds and the pending release of the US planting intentions survey resultshave all contributed to the upward movement. Fears of frost damage in some wheat growing regions, combined with dry conditions across the southern Plains, could potentially have a negative impact on production. China is planning on scrapping its maize stockpiling scheme and is going to allow the market to decide the prices of the grain. The aim of the reform is to improve quality and efficiency in China’s agricultural sector.
Chicago soyabeans futures (May-16) closed up on the week, increasing by $2.11 (Tuesday-Tuesday) to close at $336.58/t. As at Thursday 24 March, UK rapemeal price (34%, ex-mill, Erith) for May delivery increased by £5 to £159/t. Global oilseed markets recorded gains for the third consecutive week, supported by stronger trade figures and forecasts. Fund buying in Chicago, ahead of USDA data out next week and the long Easter weekend, was also reported to be a factor. However, gains were perhaps capped by the pending large South American crops, where harvest is gathering pace. Chinese imports of soyabeans are running ahead of current forecasts this season, with further growth predicted for 2016/17. Higher Chinese demand could help soak up some of the global record crops expected this season.
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Isobel Robinson, Analyst
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