Feed market update - November 2016
Read our latest summary of developments in the animal feed market.
UK feed wheat futures (nearby) increased by 4% in sterling terms between 21 October and 22 November. A couple of factors have contributed to the rise, including currency movements and the tighter UK supply and demand situation. This has prevented UK prices from tracking the declines recorded in global markets. In US dollar terms, UK prices rose by 6% over the month but other global grain futures decreased so UK wheat could become less competitive on the global market, which trades in dollars.
The record global maize supplies this season are increasing the competitiveness of maize prices in the UK feed market. In contrast, the relatively tight UK wheat crop, combined with good quality, is reducing the pressure for UK wheat to look for feed demand this season. The relative price of imported maize to UK feed wheat may well impact usage decisions for both animal feed and bioethanol.
Protein prices over the past month have dropped slightly, with hi-pro soyameal (spot, ex-store East Coast) reported at £306/t on 18 November, down £8 compared to 14 October. Soyabean prices have been seeing support in recent weeks, despite the huge US soyabean harvest, due to strong export demand, especially from China. The focus for oilseed markets, in particular soyabeans, has started to swing towards South America. Soyabean planting has begun with good conditions seen in Brazil but wet weather in Argentina has caused delays to planting and there is a risk that the optimal planting window will be missed.
To read about recent developments in the feed market in more detail, click here.
Isobel Robinson, Analyst
email@example.com, 024 7647 8863