Inside: Feed market
Wheat price exerts pressure on by-products
After the price of various by-products relaxed in early February, the signs are now showing signs of rising again. Where do these movements come from, and how do commodity prices calculate?
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Choose the subscription that suits youAt supplier Duynie, the price of pre-fried fries has been reduced by €3 per 100 kilos. Duynie blend, a mix of wheat starch and pre-fried potato product, has also been reduced in price (-€0,15 per percent dry matter). In contrast, the price of bread flour and robiscope pellets is €0,25 higher.
The wheat-related residual flows respond to the rising wheat price (Matif). This increased by just €10 in February to €164 per tonne (closing price on Monday, February 26). The quotation has risen considerably, especially in recent days. This is a consequence of the Arctic cold in Europe, which significantly increases the risk of crop damage.
Commodity prices predominantly rising
Other commodity prices, such as soy and corn, are also moving. Due to the Argentinian drought, the soybean price on the CBoT; to above $380 per tonne in week 8. This week (week 9) the price drops again slightly, now that it has become known that Brazil (which is the world's largest exporter of soybeans) still seems to be heading for a record. This means that the already ample closing stocks will receive a further boost. This may dampen price formation on the CBoT.
The price of EU feed barley (Rotterdam quotation) has also increased in recent weeks. This is now trading above €170 per tonne again. This brings the quotation back to the 5-year average. Although world barley supplies are not necessarily ample, the increase is more or less seen as a surprise. If the price increase continues, chunk prices could rise pigs en cattle to respond to this.
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The price of EU feed barley is again (briefly) above the 5-year average.
Influence again
However, it remains to be seen whether the price increase will continue. This year's EU barley harvest is estimated by Stratégie Grains at 62,1 million tonnes, compared to 58,3 million tonnes in 2017 and 59,8 million tonnes in 2016. Despite the fact that the final stocks of most (feed) raw materials are largely the weather will remain an unpredictable factor in the coming months.