Inside: Feed market

Residual flows of bread react to lower wheat price

16 January 2018 - Wouter Baan

There have been few price movements on the liquid feed market for some time now. With the start of the new year, the residual flows from the bread industry are relaxing. For the rest, the mood is quite stable.

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At supplier Duynie, the prices of Robiscopellets, Bread Flour and Power FE have been adjusted downwards by €0,25 per 100 kilos, while the price of wet bread has fallen by €0,20. These flows respond to the lower wheat price. This is under pressure as a result of high ending stocks in the world. That's how it is March contract fell below €160 per tonne on the Matif in Paris this week.

Wide range of feed milk and soy feed

Market in balance
In general, supply and demand are reasonably balanced for most product groups. The 'break' around Christmas and New Year has hardly thrown the market out of balance. Sales of brewer's yeast, which were still in short supply in November last year, have become better balanced in recent weeks.

There are some exceptions to the rule here and there. For example, the supply of feed milk and soy feed is slightly larger than demand. While there is a slight shortage of some wheat starches (Amidyn and Corami).

Expectations 
The supply of potato waste is expected to increase as winter progresses. As usual, the skin thickness increases the longer the potatoes have been stored. This does not yet lead to lower steam peeling prices. That could happen.

This expectation also applies to various wheat starches and yeast concentrates. In any case, there is little reason for upward price movements. This is partly due to the relatively stable commodity prices (soy, corn).  

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