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Inside Feed

Feed market drawn by diverse stories

21 July 2020 - Jorine Cosse

This week's feed market looks a bit uncomfortable. This may indicate differences in sentiment around product yields, forecasts and weather forecasts in our country. For a number of products, a divergent picture is created of price, supply and demand. How come? This week, traders again tried to paint a picture of the market in their area.

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The most striking products for week 30 are feed potatoes, spent grain and straw. Differences in price, supply and demand emerged for these products. While one person's spent grain price remains stable because supply and demand remain the same, another reports that the price is actually rising because demand exceeds supply. Yet another trader drops the price because supply expanded somewhat and demand lagged behind.

Beer grains hold up
The average price for this week remains at €2,70 per percent dry matter, with deviations between €2,55 and €2,90 per percent dry matter. Compared to the previous 2 years, the price is currently quite high. This is probably largely because the supply has fallen sharply as the corona crisis ensures that the catering industry, festivals and other major events are canceled. Demand may have increased because spent grain falls within the permitted products in Minister Schouten's feed plan.

Feed potatoes and straw
The sentiment for feed potatoes and straw is less unsettled than for spent grain, but the price development is striking. For feed potatoes, the total supply that may still be released is still unknown. This week the current offer varies per trader. While one person reports that they can easily obtain potatoes, the other says that there is little available this week. However, most agree that the price is falling slightly. For this week we therefore record an average price of €37,50 per tonne.

Although the supply of straw still appears to be sufficient, there is a lot of uncertainty surrounding the new harvest. Rumors have been going around for several weeks that the yields from France and Germany could be quite disappointing. The sentiment surrounding the Dutch harvest is also somewhat variable. Despite the uncertainty, prices remain the same for this week at €110 per tonne for both wheat and barley straw. There are lots that are traded for a tenner more or less, depending on the quality.

Rain creates double sentiment
It is becoming clearer by the week that the rain has provided some peace and quiet for many livestock farmers. The enormous demand for grass and corn silage has decreased and there are even rumors that prices will decrease. For this week they remain stable at €60 (grass) and €70 (corn) per ton free of charge. Now that a large part of the corn has grown well due to the rain in recent weeks, livestock farmers are waiting a little longer before stocking up on additional supplies. The same applies to grass, now that for most people the third cut is planned or is even already in the hole. The price of meadow hay remains stable this week at €180 per tonne.

On the other hand, rain means that the grass seed hay is likely to be of lower quality. This sentiment stems from the market surrounding the grass seed itself, which is now being harvested. A lot of hay remains lying around for a long time, because showers regularly throw a spanner in the works. This prevented it from drying properly. This newly harvested grass seed hay is not really returning to the market yet. The prices therefore remain unclear and therefore stable.

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