Inside Milk
Compound feed price indicator shows price increase
The compound feed price indicator shows that a significant increase in concentrate prices is to be expected. The reason for this is the increased wheat price (and by extension the high prices for grain maize and barley). For wheat, the €200 per ton appears to be a solid bottom.
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The prices of standard chunks and protein-rich chunks are slowly increasing. The compound feed price indicator shows that a further increase cannot be ruled out. So it is certainly not a finished race yet. For example, the wheat price had to decline slightly in the first week of September, partly as a result of developments in Russia and the United States (US).
Still, it looks like €200 per tonne is the bottom. Slowly but surely the prices are reaching €200. In the past it guaranteed a price of €22,50 to €23,50 per 100 kilos. This would mean that the higher prices for wheat have already been reasonably reflected in the prices of compound feed.
Prices in line with 2014?
In concrete terms, this means that prices are in line with some months in 2014, which will make them the highest prices in 4 years. However, it should be noted that wheat prices were higher at that time.
Whether wheat prices will rise further depends partly on developments in Russia. However, world trade also plays a role. Issues such as African swine fever and the trade war play a major role.
This article is part of the Milk & Feed Pro Trend Report published this week, which also focuses on the feed market, manure market and milk supply. Click here to read the Trend Report.