The movements of the feed prices this autumn do not show much consistency. Where pig feed slowly becomes more expensive, cattle feed sometimes moves downwards. The movements correspond with the raw material markets where there is also often a lack of a clear direction.
Figures from Wageningen Economic Research (WER) show that pig feed increased by €5 to €298,50 per tonne in October. Sow feed also became more expensive, while piglet feed marked time. In the cattle feed category, Standard feed A also remained the same at €303,50 per tonne, which means that the months-long price decline has been halted for the time being. B feed did become a fraction cheaper, as did calf and beef bull feed. Despite the different price trends, feed prices are generally stable, it can be said.
Wheat
On the commodity markets, the price directions are quite different. For example, wheat on the Matif in Paris has fallen by roughly €15 since the beginning of October to below €220 per tonne. On the physical market in Europe, wheat prices (Rotterdam quotation) are actually rising above €230 per tonne. Barley is rising in its wake. Despite the fact that the European grain harvest is the lowest in over ten years, this is not leading to significantly higher prices on the futures market. Consumption is also under some pressure, which is keeping global end stocks at a reasonable level. In addition, a lot of 'cheap' wheat is coming from the Black Sea region, which is also putting pressure on the market.
Soy market has cooled down
The soy market has cooled down considerably recently. The price increase on the stock exchange in Chicago which was visible in September, has been almost undone in October. Not only the beans are falling in price, but also the derivative products such as scrap. In the physical market, soy is quite scarce, but the market is reacting to an approaching record harvest from top producer Brazil.
A record harvest of 2024 million tonnes is expected there in the 25/161 growing season, which is an increase of 6% compared to a year earlier. The increase is partly due to area expansion. In addition, the yield per hectare is also on the rise due to improved cultivation techniques and cheaper artificial fertilizers. The increase in production can be partly absorbed by an increase in demand. For example, it is estimated that Brazilian exports will increase from 99 million tonnes to 102 million tonnes. Three quarters of this will go to China.
Expectations
De Compound feed price indicator predicts stable developments in pellet prices in the coming months.