Concentrate has not been as expensive since 2013 as it is now

The price for A-brok rose by no less than €0,55 in December to €24,90 per 100 kilos, the highest level since 2013. Such large price increases in one month are also unusual. However, prices will continue to rise in the first months of 2021, according to the forecast compound feed indicator van Boerenbusiness. Protein-rich chunk (B) also rose sharply this month, by €0,45 to €27,20. Cut maize core chunks also made a big step and rose by €0,90 to €35,95.

The significant price increases are due to higher raw material prices. The March wheat price contract on the Matif in Paris rose above €210 per tonne in December. Last summer, wheat was still trading below €180. The grain market is currently in turmoil due to strikes in Argentina, putting exports at risk. In addition, Russia's influence is great. The country will tax wheat exports to slow the domestic price rally.

Chinese resource hunger
The grain market in general is also dominated by countries that need to maintain their stocks in view of the corona crisis and food security. Major consumer China is an example of this. Soybean prices in Chicago recently reached a 10-year high. Since the summer, that quotation has risen by $130 to a price above $433 per tonne.

Here too, it is China that is driving up the price by large margins volumes of soybeans to buy as feed raw material for the growing pig herd. Analysts believe that the end of price increases is probably not yet in sight.