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Chunk prices set in further decline

30 July 2020 - Jorine Cosse

With 1 stable price and 4 decreasing prices, the price change of beef chunks is more constant in July than the previous month. Just like in June, the price of maize core chunks is falling the fastest. While the rosé calf and standard pellet A continued to rise last month, that is a different story for July.

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The price of standard chunk A decreases more this month than it increased last month (+ 0,05). With a decrease of €0,15 compared to June, the price for July amounts to €24,30 per 100 kilos. Compared to the 5-year average (€22,47), this is still very high. According to the forecast of the Boerenbusiness compound feed price indicator, the price will continue to fall in the coming months.

Protein and starch prices down
The price of both protein-rich chunks and silage maize core chunks continues to decline in July. Over the past 2 months, the price of silage maize core chunks fell sharply after a significant increase. In July the decline of €0,25 is somewhat smoother. This brings the price to €33,75 per 100 kilos. Such a fluctuation as the one from the beginning of this year to now has occurred every 2015 years since 2, but never before so sharp and at such a high price level.

The price of protein-rich chunks continues to decline relatively steadily. In July the price is €26,60 per 100 kilos, €0,10 lower than the price of last month. Since 2015, the price has experienced few exciting fluctuations. Now that the new feeding measure appears to have been introduced, the question is whether this will also have an effect on, among other things, the price of protein-rich chunks. For now, the price is expected to drop further in the coming months.

Meat and calf chunks
Chunks for beef bulls and rosé calves have shown a constant rising price in recent times. The first decrease of €0,05 came last month for beef bull chunks. In July the price remains the same at €25,40 per 100 kilos. Rosé calf chunks will decrease by €0,05 this month, correcting last month's increase. This price is €27,45 per 100 kilos in July.

With a more difficult sales market due to the corona crisis, price increases for beef cattle are not very desirable. Beef calves and bulls stay in rearing longer, which means they need more feed (and therefore also pellets). An extra cost item for calf and bull farmers.

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