Will the prices of cattle feed continue to rise?

Bulk prices looked down for almost all of 2019. After prices stabilized in November, they started to climb again in December. And that trend continued last month.

The largest price increase in January was for silage maize core chunks, which rose by €0,65 to €32,20 per 100 kilos. A significant increase. Forage maize core chunks are again above the 5-year average. Both the pink calf chunks and beef bull chunks increased by €0,20 to €26,65 and €24,65 per 100 kilos respectively. Both quotations are therefore higher than the 5-year average. 

Wheat prices are dropping again
The prices of standard chunk A and protein-rich chunk B both increased by €0,15. This brings the price of standard chunk A to €23,30 and the protein-rich chunk B has a price of €25,55 per 100 kilos. The price of A-brok is therefore well above the 5-year average. The rising chunk prices are the result of higher wheat, corn and soy prices. For example, the wheat price on the Matif in Paris has risen by approximately €50 since September to almost €200 per tonne in mid-January. After that, the quotation dropped again somewhat, partly as a result of broad yield forecasts in Russia. 

The increased raw material prices now appear to have been reflected in beef chunk prices. According to the compound feed price indicator van Boerenbusiness the price of A-brok will remain stable at least until July 2020. However, the uncertainty factor is still quite high, as anything can still happen on the raw materials markets.