Price A chunk has had the biggest increase

Figures from Wageningen Economic Research show that the price of standard chunk A increased by €0,30 in April to €22,25 per 100 kilos. Such price levels have not been seen since 2014. The price of protein-rich chunk B also increased by €0,25 to €24,85 per 100 kilos, while the price of beef bull and calf chunks also increased.  

The price increase will not continue in the coming months. The compound feed price indicator predicts a leveling off of the price towards August, although minor upward corrections cannot be ruled out in advance. There may be some price relief from the third quarter onwards.

Commodity prices are picking up
The increase in price and the expected trend are a result of the erratic raw material prices. Quotes are picking up on both the futures market and the physical market. For example, the price of feed wheat (Rotterdam) increased in recent months by approximately €10 per tonne to €176 in the last week of April. Similar changes are visible in the price of feed barley and corn. Also the price of soybean has increased, albeit fluctuatingly. These raw materials are dominant in many feed compositions.

Also on the futures markets (de Matif and the CBoT) the prices of feed raw materials are on the rise. The markets are in the grip of the weather and this is causing late sowing in the United States and, as a result, rising grain prices.

Without calamities, analysts assume that raw material prices could fall from the third quarter. This is because of the large closing stocks slowly decrease in size. This expectation corresponds to the movement that the compound feed price indicator predicts.The prices of feed raw materials increased significantly in 2018.