Inside: Feed market

Straw price suffers from French practices

6 March 2018 - Herma van den Pol

Straw prices continue to rise, while the feed market is otherwise largely calm. There are three reasons why straw is price-bearing. In the meantime, meadow hay is also starting to get a bit tighter and there is more demand for perennial ryegrass.

Would you like to continue reading this article?

Become a subscriber and get instant access

Choose the subscription that suits you
Do you have a tip, suggestion or comment regarding this article? Let us know

The month of March starts with relatively quiet demand. After a period of frost, many livestock farmers are now taking the opportunity to spread manure. The weather reports predict rain and that, in combination with the milder weather, could well be the kick-off to the growing season. It also means that the pressure starts to increase to make room on the well plate.

56,25

euro

per ton for silage maize

De rising chunk prices underline why it is good to make optimal use of your own food. Meanwhile, things are also fairly quiet in the by-products. This also applies to the trade in silage maize. The price for silage maize remains at an average of €56,25 per tonne, free of charge.

The reasons for higher straw prices
Earlier we mentioned that there are 3 reasons for the high straw price. Starch and protein products are currently widely available. However, this does not apply to the structural products; for example, Red Fescue has become rare. Tall fescue is still available, but at a price of €160 to €165 per tonne, free of charge. Rapeseed straw is also almost impossible to obtain. 

In addition, wheat straw is also becoming less and less available. It does not help that French arable farmers do not honor previously concluded contracts. They even charge extra money for direct delivery, and sometimes the straw is simply gone. It is the first reason why prices are rising. To get straw, the price has to go up. 

There are still small parties present in the Netherlands, but these arable farmers are also retaining the product. And if they want to sell, they ask higher prices. That is also the second reason for the rising straw price. The third argument concerns the stocks in France. If the country runs out of supplies, and if the connection to the new harvest If things go wrong, Spain will be the next supplier. This means that a greater distance must be covered to collect the straw.

Uncut wheat straw is currently trading at average €135 to €140 per ton free at farm. For cut product, the premium is between €10 and €20 per tonne. Barley straw sells for the same price as wheat, but is much more readily available. 

Meadow hay tighter
Until now, meadow hay has also been in ample supply, but suddenly the supply of this product seems to be tightening. It produces a small change, causing the price to rise to €175 to €180 per tonne, free of charge. Engels Raai does not agree with that. More demand is seen, but it doesn't hurt the price yet. This sells at €125 per tonne, free of charge.

Like every year, around this time the countdown to spring begins, and it becomes a gamble when the grass will grow. As a result of the phosphate measures, the majority of livestock farmers have a better ratio of land and livestock. Add to that the existing supplies and there are few concerns about sufficient feed.

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up