Soy price offers relief to A-brok

The price of standard chunk A rose by €0,20 in June to €22,70 per 100 kilos, according to figures from Wageningen Economic Research (WUR). The listing has been on the rise since October, resulting in a price increase of just under 5%. The price of protein-rich chunks (B) is also on the rise and increased last month by €0,15 to €25,30 per 100 kilos.

De compound feed price indicator predicts that the upward trend will not continue in the coming month(s) and even indicates a slight decline, because increased raw material prices have been reflected in the chunk prices.

(Text continues below the chart)The price of standard chunk A is now above the 5-year average. 

Commodities market volatile
A slap on the wrist is required. Because of the drought In Russia and Europe in particular, grain yields are under pressure. It International Grains Council (IGC) has therefore adjusted the forecast downwards. The wheat price is up Matif in Paris at the beginning of July is well above €180 per tonne. If the drought continues, further price increases are in the offing. Wheat is dominant in cattle feed, making the effect of any price increase significant.

The price of soya, also an important raw material for the compound feed industry, is actually falling. The listing at the CBoT in Chicago has now dropped to approximately $310 per ton, while in mid-May it was still above $380 per ton. The reason for this is the tension on the market due to the Sino-American trade war. The falling soy price provides relief for beef chunk prices.

In the wake of this, the corn price. In addition to the trade war, the good growing conditions in the American production areas also have a downward effect on prices. ​The soy price at the CBoT in Chicago has fallen to the lowest point in more than 2 years.