Feed market update – June 2017
Read our commentary on latest developments in the global cereals and oilseed markets.
Over the past month global and domestic grain markets have been largely driven by weather. With hot and dry weather prominent across key grain growing regions at the moment, markets are considering how conditions between now and harvest could impact on new crop prospects. New crop UK feed wheat futures (Nov-17) climbed £5.50/t between 25 May and 21 June to close at £147.00/t. Similarly, new crop Paris milling wheat futures (Dec-17) gained €7.50/t over the same time frame, to close at €178.75/t on 21 June. The US wheat futures markets have arguably seen the most activity over the past month, with new crop (Dec-17) Chicago wheat futures gaining 8% ($13.04/t) between the 25 May and 21 June, to close at $184.43/t. On the other hand, Dec-17 Chicago maize futures recorded a slight decrease ($0.30/t) over the same time frame, closing at $152.26/t on 21 June.
Similar to grains, global weather developments have been a key watch point for protein markets. Chicago soyabean futures (Nov-17) closed at $340.86/t on 21 June, $4.22/t lower month on month (25 May – 21 June). Unlike soyabeans, Paris rapeseed futures (Nov-17) closed up marginally (€0.75/t) on the month (25 May – 21 June), at €362.25/t on 21 June. New crop UK delivered rapeseed prices (November delivery, Erith) have fallen by £2.00/t since the 26 May to £315.50/t on the 23 June.
To read about recent developments in the feed market in more detail, click here.
James Webster, Analyst
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