Feed market update - July 2017
Read our commentary on latest developments in the global cereals and oilseed markets.
Over the past month, global grain markets have been dominated by weather developments. Hot and dry conditions across the US Plains are feared to have impacted the quality and quantity of the nation’s spring wheat crop.
These developments in the US have had a bearing on the UK markets. From 21 June to 11 July, Nov-17 UK feed wheat futures increased by 5% to reach a contract high of £154/t. However, since then prices have steadily fallen, closing at £145/t on 25 July. While the weather woes in the US haven’t really subsided, the release of the latest World Agricultural Supply and Demand Estimates from the USDA in the middle of the month brought a more bearish than expected sentiment to the market.
Similar to grains, global oilseed markets have been boosted over the last month by weather worries in the US. As at 23 July, 29% of the US soyabean crop was setting pods. This is a key yield development stage and any temperature/moisture stress at this point could limit pod numbers, beans per pod or bean size. Therefore, the adversely dry and hot conditions that have hit parts of the US soya belt is causing some concern over the quality/quantity of the crop. Between 21 June and 25 July, Nov-17 Chicago soyabean futures increased by 7%, to settle at almost $365/t. Paris rapeseed futures (Nov-17) increased by 1% to €365/t between 21 June and 25 July. However, the contract reached €381/t on 10 July on the back of rallying soyabean prices, before prices declined again.
To read about recent developments in the feed market in more detail, click here.
Millie Askew, Senior Analyst
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