The decline in compound feed prices continued in September in broad outline. Only the price decline of pig meat pellets stagnated, according to data from Wageningen Economic Research. What are the market expectations for the coming months?
For the third month in a row, the price of A-piece has fallen. The price drop of €3,50 to €303,50 per tonne was also greater than before. The recovery that was still visible in May and June has been undone. The prices of other cattle feeds also fell to a similar extent. This does not apply to pig feeds. In September, the quotation of pig feeds for meat paused at €298 per tonne. Sow feeds and piglet pellets did become somewhat cheaper.
Commodities market
The price decreases of the last months are a result of cheaper feed raw materials, such as wheat, barley and soy. In the meantime, there is a turnaround in the market. Both wheat and soy are on the rise. On the Matif in Paris, the wheat price has climbed to over €230 per tonne this week. This is the highest level in four months. A small harvest in the European Union is the reason for this. The physical wheat and barley prices are also on the rise. The same applies to soy. In Chicago, the price of beans has risen from $350 to just under $400 per tonne since mid-August.
Analysts warn that the physical commodities market may be affected by the port strikes in the United States and Canada. At several large grain terminals, dockworkers are striking for better working conditions. Since yesterday, the strikes seem to be over, now that an agreement has been reached. The start-up of logistics will probably take time.
Expectations
The Compound Feed Price Indicator provides for a-brok still considerable room for a further decline in the coming months, up to 10% compared to the current level. The Compound Feed Price Indicator for meat pig chunk assumes limited room for descent.