Inside: Feed market

Straw market can still cause fireworks

12 December 2017 - Herma van den Pol

The demand for straw remains good, which means that the market can provide fireworks in the run-up to New Year's Eve. Not only straw, but also the supply in the hay is a problem. A good opportunity for arable farmers, but for livestock farmers it means paying attention. Wrong timing can cost a lot of money.

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The trends that are in weekend 49 were recorded have not yet changed. However, in the meantime, Christmas is approaching. It is precisely this detail that makes the bigger difference in the straw trade.

End of straw supply in sight

Christmas holidays in sight
The supply of straw to the Netherlands will come to an end from next Thursday (week 51). This has to do with the approaching holidays. Not only are the employees free, but transport costs also increase dramatically.

Traditionally, dairy farmers ordered straw in bulk in the summer and then entered a quiet period. Today, orders continue all year round. This supply only comes to a standstill during the holidays. Prices are already rising due to a tight supply, but during the holidays prices can rise even further. This is because supplies have to be used. These lie with the arable farmers, who have adopted a wait-and-see attitude as a result of rising prices.

The lower end of the price for wheat straw in week 50 amounts to €125 per tonne free at the farm, with a top end of €135 per tonne. Barley straw sells at the same prices. Rapeseed straw appears to be even scarcer than wheat straw. Bad weather meant that little straw could be extracted and this is now becoming palpable.

Meadow hay is becoming more expensive
Meadow hay also has high prices. A price of €175 per tonne, free of charge, is mentioned here. Horse owners in particular are buyers. Dairy farmers are looking more at English Raai (€120 to €130 per tonne), Red Fescue (€150 to €160 per tonne) and Tall Fescue (€130 per tonne).

Structured products in particular provide a story, because there is little trade in the other products. Concentrates show a stable trend, with small changes in the prices of wheat, barley and corn. Dairy farmers have sufficient stocks of roughage.

It will be exciting to see how dairy farmers will respond to the system of phosphate rights. If more cows are now offered for slaughter, this is a consequence the lawsuit which dairy farmers lost against the state at the end of October.The price level is very stable.  

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