Feed market update – April 2017
Read our commentary on latest developments in the global cereals and oilseed markets.
Looking at the past month in isolation you could be forgiven for thinking that grain markets have been relatively quiet, with feed wheat (spot, delivered East Anglia) increasing by just 0.7% on the month to 14 April (£1.00/t to £149/t). However, last month also witnessed East Anglia delivered feed wheat hit its highest point since June 2014 (£149.50/t on 31 Mar).
Maize prices received a boost earlier in the month following the release of the US Prospective Plantings report. The USDA survey of US farmers planting intentions highlights a switch in production from maize to soyabeans. The area intended to be planted to wheat in the US also looks set to fall going into the 2017 harvest.
A combination of higher intended plantings of soyabeans in the US, as well as upward revisions to South American production, added pressure to global oilseed markets over the past month. Nearby Chicago soyabean futures have fallen considerably since mid-January, dropping by more than $47/t between 18 January and 18 April. With oilseed markets falling, oilmeal feed prices have also fallen over the past month. Soyameal prices (spot, Brazilian 48%, ex-store, Liverpool) fell by 2% to £311/t on 13 April.
To read about recent developments in the feed market in more detail, click here.
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