Seasonal influences set the price of by-products in motion. In addition, the increasing milk production per cow and the good earnings in pig farming also influence price formation.
The price of potato steam peels has been increased this week to €1,90 per percent dry matter. This has to do with the holiday period, which means that production at potato processors decreases or even comes to a complete standstill. Building and managing inventory also costs money.
Will grain markets continue to rise?
The price of wheat yeast concentrate is also on an upward trend, not because of seasonal influences in the industry, but because the soy price on the world market appears to have reached its lowest point. It remains to be seen whether the upward trend will continue. This also applies to grain prices.
Drought
A rising raw materials market is logically related to the price of co-products, but the relationship is not 100 percent. The supply of many by-products is seasonal and dependent on the weather in Western Europe.
Take the feed potatoes. "Every potato that is harvested this year will also be peeled," the trade says. Due to the drought, potato yields will be disappointing. But now that the end of the drought is in sight due to heavy rainfall, the prospects for a good sugar beet harvest and silage maize harvest are improving noticeably.
Share of by-products is growing
Due to the beautiful summer, the beer breweries are running like a charm. However, the prices of spent grain have been increased this week to €2,10 per percent dry matter. Due to the rising milk price and livestock reduction, the share of by-products in dairy cattle rations is increasing. Moreover, during the grazing period, with the fluctuating nutritional value of fresh grass, it is easier to milk with brewer's spent grain in the ration.
Clearing out supplies
Pressed pulp is and remains competitively priced. The contracts flew out the door for €1,55 per percent dry matter. The supply of pressed pulp is greater than last year, because arable farming has surrendered grain area for additional sugar beet cultivation. The corn area shows an opposite trend. Nevertheless, there is not much movement in the price. Now that the new harvest season is approaching and the formation of the cob has started under favorable conditions, sellers want to get rid of their stocks.