Inside: Feed market
Straw price breaks through 150 euros
At the end of March, the straw price managed to break through the €150 per tonne barrier. Which factor is driving prices up further, and has the ceiling already been reached? At the same time, the demand for good quality feed products remains high and that gives a hint towards the trend in milk supply.
Would you like to continue reading this article?
Become a subscriber and get instant access
Choose the subscription that suits youIt is estimated that there are 100.000 fewer cows in the Netherlands, and this is felt in the feed market. In combination with the good harvest in recent years, this mainly means that the demand for silage maize remains limited. That trade is unusually calm. Another explanation is motivated by the low price of corn gluten. Dairy farmers may have preferred this.
Feed potatoes requested
The pit is also optimally used. This results in a stable demand for feed potatoes. That price is between €25 and €30 per tonne, free of charge. However, this does not alter the fact that there is also more trade in silage. There are major differences in quality. It yields a price of €1 to €1,50 per percent of dry matter. The supply mainly comes from the stoppers and those in the north of the country who still have their pit plate relatively full.
The price of spent grain just keeps going down. That price averages out to €2 per percent of dry matter. The offer is extensive, as a result of higher beer production. The undertone in the market is that when feed is sought, there is a demand for better quality. Dairy farmers do their best to keep milk production high and prefer to use a product such as soy. It is an immediate indication that the demand to phosphate rights can sometimes increase.
Straw getting tighter
The supply of straw remains tight. Straw from France is less and less often available, and therefore more and more product comes from Spain. French dairy farmers are also seeing the season start later due to rainfall. As a result, the demand for feed remains present. The price moves between €150 and €160 per tonne free at farm; both for barley and wheat. Further increases cannot be ruled out.
The price for perennial ryegrass remains stable at €130 per tonne, but the same cannot be said for meadow hay. That price rises to €170 to €190 per tonne, free of charge. In structural products, much will depend on the connection with the new harvest. This will not start in France until June at the earliest. We will also have to wait until then on other fronts weather will work with.
Straw prices are rising considerably.