Too many steam peels, too little brewer's yeast

The liquid feed market is described as a weak market, which is priced relatively high. Differing movements are visible between the product categories. For example, there is a price reduction for potato steam peels. For example, at Duynie the price has been reduced by €0,15 per percent of dry matter. Several suppliers say that steam peels are widely available.

Lots of potatoes
There are currently more than enough potatoes in Europe. The processing figures of Dutch chip factories are therefore at the highest level in 4 years. For example, in October 7.000 more tons were processed than in the same month last year. The other residual flows from the potato industry experience some disruption from the PET feed industry, to which volumes also flow. Nevertheless, the price of potato starch DA at Duynie will decrease by €0,15 per percent of dry steam.

With wheat starches and yeast concentrates, supply and demand are reasonably balanced. This does not apply to brewer's yeast. Tightness has arisen here due to declining production. With December approaching, production should increase. This is not yet the case in the market, given the announced price increases. There is also a slight shortage in dairy residual flows (cheese whey).

Commodity competition
In general, the liquid feed market experiences competition from loose raw materials, which are relatively low priced. In addition, wheat, barley, corn (CCM) and soy are widely available. That is why livestock farmers are considering shifting rations and using more single grains.

For a long time, the (record) high volumes of corn, wheat and soy had a downward effect on the price. It is not expected that feed raw materials will become more expensive any time soon, but the raw materials market is entering an interesting period. For example, the weather in South America can have an influence.

Wheat at its lowest point
In November, the 2017/2018 ending corn stocks were again increased by the USDA (The United States Department of Agriculture) to 2.287 million bushels (1 bushel of corn is 25,4 kilos). The chance that maize will seriously pick up seems small. The listing closed €2 lower on Monday at €154 per tonne. The CBoT closed higher. 

The expectation is not that wheat falls further than the €157,75 at which the Matif closed. For example, there are uncertainties about the area for the 2017/2018 season. In November, the USDA tightened ending stocks from 960 to 935 million bushels (1 bushel of wheat is 27,2 kilos), which also supports this expectation.

The ending stocks of soy have also been adjusted by the USDA from 430 to 425 million bushels (1 bushel is 27,2 kilos). The soy price on the CBoT has been moving up and down in recent weeks, with the most recent trend being up. Monday's closing price was $363,76 per tonne. This is below the long-term average. It is expected that only a weather disaster can cause soy prices to rise further. That is not yet on the way.

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