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Straw prices are flying in all directions

18 August 2020 - Kimberly Bakker

While the feed market was fairly stable in recent weeks, the market has been moving again since this week. Straw is particularly striking, because straw prices are flying in all directions this week. Yet there is one word that best describes the situation on the market: price increases.

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There is currently no way to gauge straw prices. While one person says that the supply is sufficient, the other speaks of a major shortage. What is clear is that there is significantly less straw available this season. Some traders even speak of a halving compared to last year. In addition, there are rumors that more straw is being held in France and Germany than a few weeks ago, which in general often has an upward effect on prices.

The fact that there is little or no certainty and clarity means that prices in the Netherlands are flying in all directions: in the meantime, the price range is from €105 to €135 per tonne, free of charge. If we have to draw an average from this, we arrive at a price of €120 per tonne free of charge (+€5 per tonne). That the price has risen slightly compared to last week is a fact that traders agree on. 

Meadow hay is becoming increasingly scarce
Not only has straw become less available since last week, but the supply of meadow hay is also becoming scarcer. Product that was recently brought from the field is now just in the shed. And, since it is not in the way, many farmers leave it alone for a while. In addition, much of the produce that was still on the land grew poorly or withered as a result of last week's heat wave. This causes the price to rise this week to €190 per tonne free at the farm (+€10 per tonne).  

The price of perennial ryegrass also increased this week, rising by €10 to €120 per tonne free at farm. The reason for the increase is also a limited supply. It is somewhat striking, because there is currently not much demand for the product. What is in demand are feed potatoes. The price for this product will therefore increase this week by €2,50 to €40 per tonne, free of charge. It is also reported that potato fibers will be available from the end of the week. The price for this is around €34 per tonne, free of charge.

There was also more demand for tall fescue last week, causing the price to rise by €10 to €130 per tonne free at farm. This brings it back to the 'old and familiar level' of a few weeks ago. The price of red fescue remains at €140 per tonne free at farm, although the top has increased slightly to €145 per tonne.

New corn on the way?
There are rumors in the market that new silage maize is on the way. However, it also immediately indicates that no prices are yet up in the air for the new corn. Old corn is currently trading for an average of €70 per tonne free at farm, which is the same as the price of last week. Here and there, peaks of up to €75 per tonne are visible.

Just like the price for silage maize, the price of spent grain also remains stable. This means that it is recording €2,70 per percent of dry matter for the umpteenth week. The trade reports that demand is gradually continuing and exciting developments do not seem likely in the coming weeks. The price for meadow meadow remains stable at €115 per tonne, delivered to the farm, and approximately €60 per tonne is still being paid for grass silage this week.

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