Price increase A-brok leveling off quickly

Figures from Wageningen Economic Research show that the price of standard chunk A increased by €0,15 in the past month to €23,95 per 100 kilos. The price of protein-rich chunks (B) increased by €0,25 to €26,65 per 100 kilos.

De compound feed price indicator predicts that chunk prices (cattle) will level off in the coming months. In that case, the upward trend, which has now lasted almost 1 year, will be broken. Since November 2017, the price has increased by more than €3 per 100 kilos.

Wheat: bottom at €200 per tonne
The reason for the price increase is the increased commodity prices (particularly wheat and barley), as a result of the drought. The wheat price is not rising any further, but has been stable for weeks. On the matif in Paris the December contract fluctuates around €200 per tonne.

The price of feed wheat (EU-Rotterdam) has been flat since mid-October, just below €215 per tonne. The price of feed barley (EU-Rotterdam) is also stable, just above €215 per tonne.

Soy and corn cheaper
De grain corn- and soy prices in the United States (CBoT in Chicago) have shown significant declines in recent months, partly due to good growth conditions in the American production regions. The harvest is currently coming to an end and that is causing additional price pressure.

The downgrade of the soy price is due to the trade war between the United States and China. The Chinese have stopped buying soybeans from the United States and are now mainly focusing on the South American market. This drives a wedge between South and North American prices.

In terms of loose raw materials, rapeseed and sunflower seed meal are poorly available, partly due to the logistical problems caused by the low water levels on the various rivers in Northwestern Europe.