Feed raw materials widely available worldwide

In September, standard chunk A is €20,95 per 100 kilos, a decrease of €0,10 compared to the previous month. This is evident from figures from Wageningen Economic Research (WUR). At least until February the Compound feed price indicator a downward trend. The price of protein-rich chunks will decrease by €0,15 to €23,95 per 100 kilos in September. The price of silage maize core chunks drops from €0,55 to €30,40 per 100 kilos.

Text continues below the chart.The price of standard chunk A falls to 2016 levels.

More Soy in US
The price of joint materials is widely available, which puts pressure on prices. The International Grain Council (IGC) has increased its global soy forecast by 1 million tonnes to 348 million tonnes, up from 351 million tonnes in 2016.

In the United States (US), the harvest this year will probably be 2,5 million tons larger to 119,5 million tons. Despite the fact that the US can refute good export figures, the soy price appears to be making little progress, although the trend is increasing rather than decreasing. Soy on the CBoT closed Friday, September 29 at $355,77 per tonne.

Text continues below the chart.The closing price of soy on the CBoT is very volatile.

Smaller corn harvest, lots of stock
The IGC has corrected the corn harvest upwards by 12 million tons to 1.029 million tons. This is lower than last year, when 1.079 million tons were harvested worldwide. However, that was a record year. The EU is likely to harvest 58,9 million tons this year, compared to 60,5 million tons last year. The fact that the corn harvest is lower than last year does not yet provide an upward price stimulus. The stocks are still overflowing from previous harvest years.

The USDA (The United States Department of Agriculture) estimates domestic corn stocks as of September 1 at 2.295 million bushels, the largest stocks since 1988. The market had expected even more. The corn price on the Matif has been in a downward trend since the beginning of August. The quotation closed on Friday at €155,50 per tonne. In the US, on the CBoT, the corn price is on the rise. This is due to the weakening dollar during that period. The CBoT closed on Friday at $139,86 per tonne, after briefly trading below $130 per tonne in early September.

Text continues below the chart.Maize also shows a declining trend.

Stock tempers wheat
In recent weeks, the wheat price has mainly been on the rise. However, due to upwardly revised US harvest forecasts, the Matif closed €1 lower on Friday at €166 per tonne. Globally, the IGC has increased the wheat harvest by 6 million tons to 748 million tons. The expectation is that the wheat price will continue to trade between a range of €163 and €175 per tonne for the time being.  

Wheat has also recently shown a downward trend.