Is the drought causing unrest in the feed market?

To this day, the answer is still 'no', but traders think that the drought should not last much longer. Some traders sense some unrest brewing among dairy farmers. However, this is still insufficient for price increases or hoarding behavior. Here and there something extra is bought or pre-ordered, but real hoarding has not yet occurred.

Coronavirus
In addition to the drought, we are also still dealing with the corona crisis, which has a finger in the feed market. The crisis is causing the supply of feed potatoes to decline sharply. This in turn ensures that the price drop for potatoes has stopped. Potato growers are holding on to the potatoes while waiting for the government's emergency support package. The prices charged by traders vary somewhat, but in most places they sell for €30 per tonne (farm free).

The supply and price of spent grains are also still shaped by the corona crisis. Just like in previous weeks, the shutdown of some breweries plays a major role. The supply is therefore still minimal, allowing the price to remain stable at an average of €2,75. There is still a difference in prices from north to south. These are stable at €2,85 (north) and €2,70 (south).

Depending on the drought
Although the market for silage grass and silage maize is still quiet, traders do not dare to say how long this will remain the case. Here and there they notice some unrest among their customers due to the drought. Some people are afraid that the first cut will not yield enough and there are even farmers who are worried about their corn yield.

But for now the situation remains stable. Demand has not increased and supply has not decreased. As a result, the price of silage maize can remain at €70 per tonne and the price of grass silage at €60 per tonne. It is now true that the vast majority of the grass silage supply consists of the wetter autumn silages. Beautiful, dry spring pits are difficult to obtain. The price of both grass silage and maize silage are both aimed at the 'better' quality silages.

Noise? No way
All unrest surrounding straw has completely disappeared. There is sufficient supply, while demand has ebbed away somewhat. There also seems to be no more transport problems or loading problems. As a result, the price will remain stable next week at €100 per tonne (free of charge). There is also still no difference in the price of barley and wheat straw.

The situation is somewhat striking, as the price was considerably higher in 2018 and 2019 at €160 and €132,50 per tonne respectively. In addition, the prices of barley and wheat straw sometimes varied throughout the year. A stable line as shown by the current price trend has never occurred before in such a long term.

Hay and grasses
The market for meadow hay and the grass species red fescue, tall fescue and meadow meadow is stable, as in previous weeks. There is little to no change in demand and there is little movement in supply. The prices are €180, €150, €130 and €135 per tonne respectively.