Inside Feed

Uncertainty hits the feed market

7 August 2018 - Kimberly Bakker

Uncertainty has hit the feed market. This means that prices are once again looking for a way up. In addition, the straw harvest has almost been completed and that has not gone unnoticed by the livestock farmers.

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

Some traders report that livestock farmers are 'fighting over straw'. Demand is currently much greater than supply, which has caused prices to rise. The harvest in France has been completed, but that does not immediately mean that there is sales interest. Many French livestock farmers choose to first fill the sheds before they even make anything available for sale. They ask themselves the question: don't I need it myself?

Another factor is that the harvest this year is 3 weeks earlier than normal. This means that many drivers are still on holiday, which means that demand cannot always be met. You would say that there is enough straw in the Netherlands, and that is true. However, traders indicate that this is much more expensive. The full loads from abroad cost about €127,50 per ton, free of charge. Dutch livestock farmers offer straw for €100 per tonne from the field, plus €25 for pressing and €25 for transport. Then you arrive at a price of €150 per ton, free of charge.

Various traders report that straw is now also coming out of it United Kingdom is achieved in order to be able to meet demand. The price for straw (both barley and wheat straw) for this week amounts to €127,50 per tonne, free at the farm. If the transport distance is a little longer, prices can sometimes rise to €130 per tonne, delivered to the farm.

(Text continues below the chart)The price for wheat straw has shown a significant increase in recent times.

Cutting maize: waiting for a new harvest?
The price for silage maize remained unchanged last week stable, but this week there will be another plus. The price rises to €75 per tonne free at farm. Here and there, livestock farmers have started bringing in the new harvest. However, it will not be immediately offered for sale. The same principle applies here as is visible in France with straw; Livestock farmers do not know what the future holds and are somewhat worried about it. It means that they hold on to their product for a while.

There is also more demand for meadow hay, which means the price has risen to €190 per tonne, delivered to the farm. klimt. Traders even report that it is a matter of 'what the fool is willing to give for it'. This price increase is also related to the term 'uncertainty'. However, a trader does indicate that there was a golden autumn in 1976, and that is still possible today. “That's why it's important to stay calm and not make panic purchases.”

If we look at the price of perennial ryegrass, it is one of the few products that has to lose its price this week. The price drops to €135 per tonne, free of charge. This is striking, because there is a lot of demand for perennial ryegrass. The traders therefore cannot tolerate the price increase to declare.

(Text continues below the chart)The price of silage maize has risen sharply since the drought. 

Beer spent grain has a long delivery time
The price of brewer's grain is also sacrificing something this week, bringing the price to €2,40 per percent dry matter. However, this is still a very high price. There is also less brewing, which means that delivery times for this product can increase to at least 5 weeks. As a result, the demand for spent grain has weakened somewhat and the price is falling.

The silage trade is becoming difficult market described. There is little product available, causing the price to show crazy movements. This shows an increasing trend, while there is not that much demand for the product. The price this week amounts to €60 per tonne free at the farm.

Minimum available
Red fescue, tall fescue and Veldbeemd are almost sold out. Here and there transactions are still made for prices that are well above average; For example, a batch of tall fescue was sold for €170 per tonne, free of charge. However, because there is virtually no product available anymore, prices remain at €140 per tonne free from farm (Red fescue), €135 per tonne free from farm (Rietzwenk) and €155 per tonne free from farm (Veldbeemd).

Feed potatoes are also virtually no longer available and we have to wait for the next shipment, which, according to traders, will probably only be the case next season. The price for the product therefore remains at €40 per tonne, free of charge.

Want to see more prices and graphs? View the Database.

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

Login/Register