FEED MARKET UPDATE – MAY 2017
Read our commentary on latest developments in the global cereals and oilseed markets.
There is little doubt that weather is the word of the month for arable markets, be that too little rainfall in Europe or too much rainfall and snow in parts of the US. UK feed wheat futures (Nov-17) increased by £3.70/t (2.7%) between 18 April and 24 May to close at £141/t. In response to weather concern futures had risen further mid-month climbing to £143/t on 12 May, a contract high, before falling back as rainfall hit the UK relieving potential crop stress. Paris wheat futures (Dec-17) fell by €2.75/t since 18 April to close at €171.25/t on 24 May. Similar relief was seen in Chicago wheat futures, with prices also climbing early in the month on concern of wet weather in parts of the US and snow in Kansas, peaking at $179.75/t on 2 May. Chicago wheat futures (Dec-17) closed down $1.56/t from 18 April to $171.85/t on 24 May.
Global protein markets moved down over the month (18 April to 24 May), but as with grain markets, started the month moving higher on weather concerns. Chicago soyabean futures (Nov-17) closed at $348.3/t on 24 May, down $3.21 from 18 April. Similar moves were seen in Paris rapeseed futures which felt the combined lift from delayed soyabean planting concerns and also the release of Canadian canola (rapeseed) stock levels, which were at their lowest level for the past four years at 6.6Mt. Paris rapeseed futures increased to €376/t on 8 May before falling back later in the month to close at €364.75/t on 24 May, as the release of the WASDE pressured markets.
To read about recent developments in the feed market in more detail, click here.
James Webster, Analyst
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