Livestock farmers take straw prices into account, which can peak in the last weeks of the year. There are various motives for this. Does this mean that arable farmers can benefit? It would be a small windfall on top of the meager grain prices.
Forage traders notice that there is a high demand for straw among livestock farmers. This market is expected to open in the run-up to New Year's Eve for fireworks can take care of. This offers opportunities for arable farmers. However, the current price development does not yet show this. The space between supplier and buyer is the shock absorber.
Silence around the holidays
The supply of straw to the Netherlands will stop at the end of week 51, the penultimate week of 1. Due to the holidays, the transport sector is partially at a standstill. Transport costs are increasing sharply, which means that straw and other roughage are not being supplied from abroad for a while. This is currently causing a tight supply, while dairy farmers are placing new orders.
Forage traders dip from their stocks to provide customers with sufficient straw. Arable farmers have adopted a wait-and-see attitude, given the expected rising prices. The mood is described as fixed on the stock exchanges. This image is also noticeable abroad. French arable farmers are also keeping their doors closed, with a view to rising prices. That is why more straw will be brought from Spain this year.
Price not up (yet).
Last week (week 50) in Middenmeer the price for straw in large bales fell by €5 per tonne, to €110 to €120 per tonne. Small bales remained unchanged at €140. Goes recorded €95 to €105 per tonne and Emmeloord €105 to €110 per tonne in week 49.
The price for customers is woven through this. In week 50, the price of wheat straw will be €125 to €135 per tonne, free of charge. The same is paid for barley straw. Rapeseed straw in particular is looted. Due to a difficult harvest, little of this product reached the bale.
Competitors on the horizon
Compared to previous months, the straw price has been increasing by a few tens of euros since November on the buyer's side. In addition to dairy farmers, flower bulb growers have acquired a considerable volume, which is partly why the supply is described as tight.
With a persistently low price level for wheat and barley, the straw trade can serve as a nest egg for arable farmers who have their own storage options. However, this does mean that for the next 2,5 weeks more attention will have to be paid to the next market than to Christmas dinner. When the transport companies send their combinations on the road in January, there will soon be enough supply to fill the gap in the market.