Feed market update – November 2017
Read our commentary on latest developments in the global cereals and oilseed markets.
Grain markets have continued to drift sideways over the past month, with a lack of significant news to either drive markets or put them under sustained pressure. On 24 November, UK feed wheat futures (May-18) were worth £144.75/t and since late-August the contract has closed in a range of just £6.75/t.
At the headline level, global markets are well supplied following large harvests for most producers across the Northern Hemisphere. In particular, the 2017 Russian wheat crop is a new record at 83Mt and 14% larger than in 2016 (USDA). Also, while the US maize crop, which accounts for around a third of total global grain output on its own, is 4% smaller than last year, it is still the second-largest on record (USDA).
Similar to grains, oilseed and protein prices have generally moved sideways over the past month. On 22 November, Chicago soyabean futures (May-18) closed at £279.75/t on 24 November, £0.76/t lower than a month earlier. Meanwhile, Paris rapeseed futures (May-18) futures closed at £333.31/t on 24 November, compared to £333.32/t on 24 October. With little change to the headline supply and demand forecasts over the past month, currency has been arguably the main influence on oilseed prices.
To read about recent developments in the feed market in more detail, click here.
Helen Plant, Senior Analyst
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