Feed market update - 9 March 2016
Read our latest summary of developments on global markets for cereals and oilseeds.
UK feed wheat futures (May-16) closed at £104/t on Tuesday, which is an increase of £2.15 compared with last Tuesday. Chicago wheat and maize futures also closed up on the week. UK pig feed manufacturing in January was 2.4% behind the same point last year at 140Kt, according to Defra’s usage data released last week. Pig grower feed production increased in January by 3% year on year but starter, breeder and finisher feed production decreased by 12%, 8% and 2% respectively.
AHDB’s Winter Planting Survey revealed a decline in crop area as at 1 December 2015 across England and Wales, for the second year running. The changes look to be driven by economic and agronomic factors as planting conditions were again generally favourable last autumn. The oilseed rape area in England is estimated 10% lower than in 2015. Unless spring plantings are substantially higher than in the last two years, this sets England up for the lowest oilseed rape area since 2009.
As at Friday, UK rapemeal (34%, ex-mill Erith) for March delivery was £143/t, which is up £5 from the previous week. Brazilian soyameal (48% ex-store Liverpool) for March delivery increased by £1 on the week to £263/t. The soyabean harvest is gathering pace in Brazil, with over half of crops harvested in the kay state of Mato Grosso. Output forecasts for Brazil have been increased by a number of forecasters. Chinese soyabean imports this season (2015/16) could reach 83Mt, according to Chinese company COFCO Futures, due to improved margins on pig production. This would represent a year on year increase of 4.7Mt.
To read more about the latest developments in the feed market click here.
Isobel Robinson, Analyst
firstname.lastname@example.org, 024 7647 8863